2003 (12) TMI 576 - AT - Wealth-tax

Summary

Issues:
Appeal against deletion of addition of land value for wealth tax purposes based on agricultural nature of the land.

Analysis:
The case involves an appeal by the Department against the order of the CWT(A) regarding the addition of Rs. 13,21,255 to the total wealth on account of land at Sheoganj. The Assessing Officer added the value of the land for wealth tax purposes as no agricultural activity was found on the land, which was sold by the assessee during the relevant year. The assessee contended that agricultural activities were indeed carried out on the land, as evidenced by the declaration of agricultural income in the income tax assessment order. The CWT(A) observed that the acceptance of agricultural income in the income tax assessment order was sufficient proof of agricultural activities being conducted on the land, thus concluding that the land was agricultural in nature and exempt from wealth tax inclusion.

The Tribunal, after hearing both parties, noted that the income tax assessment order accepted agricultural income at Rs. 1,76,000, indicating that agricultural activities were indeed conducted on the land. Consequently, the Tribunal upheld the CWT(A) order, stating that agricultural land is exempt from wealth tax and should not be included for wealth tax purposes. As a result, the Department's appeal was dismissed by the Tribunal.

In summary, the Tribunal affirmed the CWT(A) decision to delete the addition of the land value for wealth tax purposes based on the agricultural nature of the land, supported by the acceptance of agricultural income in the income tax assessment order as evidence of agricultural activities being carried out on the land.