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2013 (4) TMI 832 - HC - Wealth-taxChargeability to wealth tax - Held that - Insofar as the valuation of land measuring 22.1 acres adjoining to the factory of M/s Industrial Cable (India) Ltd. wherein eucalyptus trees have been grown and were found to be utilized for industrial packing purposes is concerned the CWT(A) decided the matter in favour of the assessee and the stand taken by the assessee has been accepted after the cases were set aside by the Tribunal pertaining to the assessment years 1996-97 to 1998-99 vide orders dated 24.12.2007. Regarding land measuring 44 acres pertaining to the assessment years 1996-97 1997-98 and 1998-99 which is agricultural land and according to the Wealth Tax Officer is chargeable to the wealth tax the finding of the Wealth Tax Officer was reversed by the CWT(A) whereas the Tribunal has again upheld the order of the Wealth Tax Officer holding that it is chargeable to the wealth tax. It is stated that the said issue is covered by the decision of the Supreme Court in the case of Jagraj Singh Mann v. Commnr. of Wealth Tax Patiala and another 2011 (12) TMI 535 - SUPREME COURT Civil Appeal as decided whereby the appeals filed by the assessee were dismissed and the order of the Wealth Tax Officer was maintained. No substantial question of law is involved in the appeals wherein the issue with regard to the land measuring 3.60 acres and 22.1 acres is involved and as such these appeals filed by the assessee as well as by the revenue in respect of the cases of M/s Industrial Cables (India) Ltd. with regard to 3.60 acres and 22.1 acres of land are hereby dismissed. The rest of the appeals filed by the assessee M/s Industrial Cables (India) Ltd. pertaining to 44 acres of land are covered by the decision of the Supreme Court in Jagraj Singh Mann s case (supra) and are thus dismissed.
Issues involved:
1. Chargeability of wealth tax on specific land portions owned by M/s Industrial Cables (India) Ltd. 2. Valuation and utilization of land adjoining the factory of M/s Industrial Cables (India) Ltd. 3. Chargeability of wealth tax on agricultural land owned by M/s Industrial Cables (India) Ltd. 4. Applicability of Supreme Court decision in Jagraj Singh Mann v. Commnr. of Wealth Tax to the present case. Issue 1: Chargeability of wealth tax on specific land portions The Wealth Tax Officer assessed M/s Industrial Cables (India) Ltd. for the years 1993-94 to 1998-99, charging wealth tax on 3.60 acres of land. The CWT(A) partially allowed relief, exempting 1/3rd of the land from wealth tax. The Tribunal upheld this decision. The revenue appealed against the non-chargeability of 1/3rd portion, while the assessee appealed regarding the remaining 2/3rd portion. Issue 2: Valuation and utilization of adjoining land Regarding 22.1 acres of land near the factory of M/s Industrial Cables (India) Ltd., where eucalyptus trees were grown for industrial packing purposes, the CWT(A) ruled in favor of the assessee. The Tribunal upheld this decision for the assessment years 1996-97 to 1998-99, after setting aside previous orders. Issue 3: Chargeability of wealth tax on agricultural land For 44 acres of agricultural land owned by M/s Industrial Cables (India) Ltd. for the years 1996-97 to 1998-99, the Wealth Tax Officer deemed it chargeable to wealth tax. The CWT(A) disagreed, but the Tribunal upheld the original decision, citing the Supreme Court's ruling in Jagraj Singh Mann's case. The appeals related to this land were dismissed based on the Supreme Court precedent. Issue 4: Applicability of Supreme Court decision The High Court found no substantial legal question in the appeals concerning the 3.60 acres and 22.1 acres of land owned by M/s Industrial Cables (India) Ltd. These appeals were dismissed. The remaining appeals by the same company, as well as appeals by other individuals, were also dismissed based on the precedent set by the Supreme Court in Jagraj Singh Mann's case. This comprehensive analysis of the judgment from the Punjab and Haryana High Court addresses the various issues related to the chargeability of wealth tax on different land portions owned by M/s Industrial Cables (India) Ltd., as well as the applicability of relevant legal precedents.
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