1992 (11) TMI 122 - AT - Wealth-tax

Summary

Issues: Valuation of open vacant land under Urban Land (Ceiling & Regulation) Act, 1976.

Analysis:
The appeals were filed by the assessee against the orders of the Appellate Commissioner of Wealth-tax concerning the valuation of open vacant land affected under the Urban Land (Ceiling & Regulation) Act, 1976. The assessee claimed compensation under section 11 of the Act, valuing the land at Rs. 6,650. However, the Assessing Officer adopted higher values for the land, as it was not acquired or vested in the Government, leading to a dispute. The Tribunal initially remanded the matter to the Assessing Officer for lack of details. Subsequently, the Assessing Officer revalued the land at higher values, prompting the appeals. The Appellate Commissioner directed a revaluation of the land, reducing it by 50% due to the impact of the Act. The assessee contended that the land was in excess of the ceiling limit, affecting its value, and argued for compensation based on the Madras High Court decision in CWT v. K.S. Ranganatha Mudaliar [1984] 150 ITR 619. The department supported the Appellate Commissioner's order, noting an exemption granted by the Government for the excess land. The Tribunal analyzed the provisions of the Act and held that compensation is only awarded upon acquisition and vesting of excess land in the Government after a notification. As no evidence showed such vesting, the Tribunal found the assessee was not entitled to compensation under section 11. The Tribunal agreed that the land's value was impacted by the Act, affecting the transferability and real value, but upheld the Appellate Commissioner's decision to remand the matter for revaluation. Ultimately, all appeals were dismissed.