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2020 (12) TMI 148 - AT - Wealth-taxWealth tax assessment - assessing the value of land at Kelambakkam and Navalur - exemption of 500 sq.metres of any plot u/s.5(1)(vi) of the Wealth Tax Act - HELD THAT - Since the assessee is not having a residential house and has not claimed any exemption u/s.5(1)(iv), then he is entitled to claim exemption u/s.5(1)(vi), any of the plot within the limits of 500 sq.metre area. The area of the land at Kelambakkam is very well within the limit specified, therefore, the AO is directed to exempt the value of Kelambakkam land u/s.5(1)(vi) of the Wealth Tax Act - Assessee s appeal is allowed.
Issues:
Assessment of wealth tax on land value below the exemption limit under Wealth Tax Act, 1957. Analysis: The appellant, a manufacturer of corrugated boxes, appealed against the Commissioner of Income Tax (Appeals)'s order for the assessment year 2009-10. The appellant, an individual, did not file a wealth tax return, leading to the AO assessing the value of land at Kelambakkam and Navalur. The appellant contended that as he did not own a house property, he did not claim exemption under section 5(1)(iv) of the Wealth Tax Act. The appellant argued for exemption under section 5(1)(vi) for any plot within 500 sq.metres, as the Kelambakkam plot was 4300 sq.ft, below the specified limit. The AO was directed to exempt the value of the Kelambakkam land under section 5(1)(vi) of the Wealth Tax Act. The appeal was allowed, emphasizing the entitlement to exemption based on the plot's size within the specified limit. This judgment highlights the importance of correctly applying the provisions of the Wealth Tax Act concerning exemptions based on property ownership and plot size. It clarifies that an individual not owning a residential house can claim exemption under section 5(1)(vi) for any plot within the specified limit, even if the plot's value falls below the exemption threshold. The decision underscores the need for assessing officers to consider all relevant factors and statutory provisions when determining wealth tax liabilities to ensure fair and accurate assessments.
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