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Issues Involved:
1. Exemption u/s 5(1)(vi) of the Wealth Tax Act for Station Road Property. 2. Valuation of immovable property at Shanti Kunj, near Circuit House, Alwar. Summary: Issue 1: Exemption u/s 5(1)(vi) of the Wealth Tax Act for Station Road Property The Revenue contested the decision of the ld. CWT(A) directing the AO to allow exemption u/s 5(1)(vi) of the Wealth Tax Act for the Station Road Property, Alwar, claiming it was a residential property. The AO argued the property was vacant and later converted into a commercial complex, Datta Arcade, thus valuing it at Rs. 2,13,48,113/- using the DLC Rate. The ld. CIT(A) countered, stating the property's nature as residential was established in earlier wealth tax proceedings and upheld by appellate orders, and the AO could not unilaterally change its classification. The Tribunal agreed with the ld. CIT(A), noting the property had construction and was used as residential quarters for laborers. The Tribunal directed the AO to ascertain the un-built area exceeding 70% of the aggregate area and value it accordingly, while the constructed area plus 70% of the aggregate area would be exempt u/s 5(1)(vi). Issue 2: Valuation of immovable property at Shanti Kunj, near Circuit House, Alwar The Revenue challenged the ld. CIT(A)'s direction to adopt the valuer's report for the Shanti Kunj property, valued at Rs. 8.00 lacs, instead of the AO's valuation of Rs. 15,13,050/-. The ld. CIT(A) favored the technical valuation over the non-technical AO's assessment. The Tribunal restored the issue to the AO to ascertain the plot's area and market value for different assessment years, as discrepancies in the plot's area were noted. Conclusion: The Tribunal partly allowed the Revenue's appeals for statistical purposes, directing the AO to re-evaluate the valuation of the Shanti Kunj property and to consider the un-built area exceeding 70% of the aggregate area for the Station Road property. The order was pronounced in the open Court on 23-09-2011.
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