9911796707
TMI Blog2008 (2) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and circumstances of the case and in law, the hon'ble Tribunal erred in confirming the order of the Commissioner of Wealth-tax (Appeals) and directing the deletion of the addition of Rs.1,56,00,000 to the net wealth of the assessee being the value of the under construction property at Ooty? (b) Whether on the facts and circumstances of the case and in law, the hon'ble Tribunal erred in confirming the order of the Commissioner of Wealth-tax (Appeals) and deleting the addition of Rs.26,04,413 to the net wealth of the assessee being the value of the secured debts? 2. Admit. 3. In so far as question (b) is concerned, we find that after making additions in the sum of Rs.26,04,413, the Assessing Officer in his order of assessment dated 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of our discussion the relevant portion of section 40, as introduced by the Finance Act 1983 is being reproduced. "40(3) The assets, referred to in sub-section (2) shall be the following namely:-............. (v) land other than agricultural land; Provided that nothing in this clause shall apply to any unused land held by the assessee for industrial purposes or for construction of a hotel for a period of two years from the date of its acquisition by him. (vi) building or land appurtenant thereto, other than building or part thereof used by the assessee as factory, godown, ware house, cinema house, hotel or office for the purposes of its business or as a hospital, creche, school, canteen, library, recreational centre, shelt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. What this would contemplate would be in the nature of tax holiday meaning thereby, that for a period of two years from the date of acquisition of the land on which the assessee seeks to construct the hotel it would be exempted from wealth tax as once the hotel is constructed it would be subject to wealth tax under section 40(3)(vi) except to the extent provided in clause (via) and (vib). A reading of the section would therefore, make it clear that the land which otherwise as assessable for tax as it would be included in net wealth for the purpose of calculating wealth tax, if it is to be put to use for industrial or hotel purpose is exempted for two years from the date of the acquisition. In the instance case, we find that the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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