2016 (4) TMI 500 - AT - Wealth-tax

Reassessment - addition of alleged urban land - contentions of the assessee to treat the land as land occupied by any building which has been constructed with the approval of the appropriate authority and thus excludible from urban land exigible to wealth tax - Held that - We are, however, not persuaded by learned counsel s submission. The words are clear and unambiguous. A piece of vacated land cannot be excluded from taxable wealth simply because building has been constructed thereupon subsequently. As for the genuine hardship being faced by the assessee, we need not commiserate with the assessee because it is not for us to supply the casus omissus, even if any. In the case of Tarulata Shyam vs. CIT 1977 (4) TMI 3 - SUPREME Court held that there is no scope for importing into the statute the words which are not there. Such interpretation would be, not to construe, but to amend the statute. Even if there be a casus omissus, the defect can be remedied only by legislation and not by judicial interpretation.To us, there appears no justification to depart from normal rule of construction according to which the intention of Legislature is primarily to be gathered from the words used in the statute. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used. Once it is shown that the case of the assessee comes within the letter of law, he must be taxed, however great the hardship may appear to the judicial mind to be. Thus we see no need to resort to any creative interpretation process to read down the provision, even if, as learned Counsel claims, any undue hardship is caused by the plain words of the statute.

Summary

Issues:
Challenging reassessment validity under Wealth Tax Act, 1967 for AY 2008-09 - Addition of urban land and gold/silver ornaments - Interpretation of vacant land definition for wealth tax purposes.

Analysis:
1. Reassessment Validity: The appellant contested the correctness of the CWT(A)'s order regarding reassessment validity. The main contention was the absence of wealth escapement. The CWT(A) upheld the reassessment, leading to the appeal. The tribunal assessed the facts and circumstances, emphasizing the need for evidence to support claims under the Wealth Tax Act. Lack of proof regarding the urban land's intended use for residential construction and absence of relevant permissions led to the rejection of the appellant's arguments.

2. Addition of Urban Land: The dispute revolved around the inclusion of a piece of land as taxable wealth. The appellant argued that the land was purchased for residential construction, completed later, and hence should not be considered vacant land. However, the authorities maintained that without proper permissions and evidence of construction, the land qualified as urban land under the Act. The tribunal upheld this decision, emphasizing the need for compliance with statutory definitions and permissions.

3. Interpretation of Vacant Land: The appellant sought to reinterpret the definition of vacant land to exclude land purchased for construction but lacking approvals due to time constraints. However, the tribunal rejected this argument, citing clear statutory language and the inability to introduce missing elements judicially. Referring to legal precedents, the tribunal emphasized the importance of adhering to legislative intent and statutory language without implying additional conditions. Ultimately, the tribunal dismissed the appeal, upholding the decisions of the lower authorities based on statutory provisions and lack of grounds for intervention.

In conclusion, the tribunal's judgment emphasized adherence to statutory provisions, the importance of evidence in tax matters, and the limitations of judicial interpretation in tax laws. The decision highlighted the need for compliance with legal requirements and the inability to introduce new conditions through creative interpretation, ultimately leading to the dismissal of the appeal.