2012 (3) TMI 638 - AT - Wealth-tax

Summary

Issues Involved:
1. Deletion of addition of wealth on account of share in Raniwala Oil Mills.
2. Deletion of addition of wealth on account of share in Krishna Mills, Alwar.
3. Deletion of addition of wealth on account of share in property situated at Rishikesh.
4. Deletion of addition of wealth on account of share in property situated at Station Road, Alwar.
5. Deletion of addition of wealth on account of share in property situated at Kush Marg, Alwar.
6. Deletion of addition of wealth on account of share in property situated at Nagli Khora, Alwar.

Summary:

1. Deletion of Addition of Wealth on Account of Share in Raniwala Oil Mills:
The Tribunal confirmed the order of the ld. CIT (A) by referencing its previous detailed decision, which concluded that the land in question was industrial and not urban land. The Tribunal emphasized that the valuation should be based on the factual position as on the valuation date and not on hypothetical future uses. The Tribunal also noted that the valuation difference exceeded the limit prescribed u/s 16A of the Wealth Tax Act, necessitating a reference to the Valuation Cell.

2. Deletion of Addition of Wealth on Account of Share in Krishna Mills, Alwar:
The Tribunal upheld the ld. CIT (A)'s decision, noting that the property was under civil litigation and the assessee had a disputed right over it. The Tribunal agreed that such an asset is not includible in the wealth chargeable to tax.

3. Deletion of Addition of Wealth on Account of Share in Property Situated at Rishikesh:
The Tribunal confirmed the ld. CIT (A)'s order, agreeing that the land was agricultural as per the purchase deed and revenue records. There was no evidence to suggest that the land was urban, and thus it was not liable to Wealth Tax.

4. Deletion of Addition of Wealth on Account of Share in Property Situated at Station Road, Alwar:
The Tribunal referenced its previous decision in the case of a co-owner, Smt. Nirmala Devi Data, and confirmed the ld. CIT (A)'s order. It was noted that the property was not commercial land on the valuation dates and that the valuation should consider the constructed area plus 70% of the aggregate area u/s 5(1)(vi) of the Wealth Tax Act.

5. Deletion of Addition of Wealth on Account of Share in Property Situated at Kush Marg, Alwar:
The Tribunal upheld the ld. CIT (A)'s decision, noting that the property was in the name of the assessee's daughters, who were major. The property had been accepted as belonging to the daughters in income tax proceedings, and there was no finding that the assessee held the land in benami.

6. Deletion of Addition of Wealth on Account of Share in Property Situated at Nagli Khora, Alwar:
The Tribunal confirmed the ld. CIT (A)'s order, noting that the land was reserved for a park and open space as per the Master Plan, and no construction was permissible. Thus, the land was not includible in the Wealth Tax Act.

Conclusion:
The appeal of the department was dismissed, and the order was pronounced in the open court on 07.3.2012.