2015 (6) TMI 770 - HC - Wealth-tax

Whether the land at Ambattur sold by the assessee would fall within the exclusion clause of Section 2(ea) of the Wealth Tax Act - Held that - as the issue involved herein being pure question of fact and as both the Appellate Authorities, after verifying the records, arrived at such conclusion, we find no question of law much less any substantial question of law arises for consideration in these appeals. - Decided against Revenue.

Summary

Issues:
1) Whether the Tribunal was right in upholding the order of the CIT(A) directing the exclusion of land value at Ambattur while computing the net wealth of the assessee?
2) Whether the land sold at Ambattur falls within the exclusion clause of proviso to Section 2(ea) of the Wealth Tax Act?

Issue 1:
The primary issue in this case is whether the Tribunal correctly upheld the CIT(A)'s order to exclude the value of land at Ambattur while calculating the assessee's net wealth. The contention was that the land sold comprised of factory buildings and should not be considered urban land for wealth tax purposes. The Revenue argued that the constructed area was minimal compared to the total land area, thus not meeting the exclusion criteria under Section 2(ea) of the Wealth Tax Act.

Issue 1 Analysis:
The Assessing Officer initially imposed wealth tax based on the Revenue's argument, but the CIT(A) overturned this decision after reviewing the remand report. The Tribunal, after considering the remand report, objections by the assessee, and relevant provisions of the Wealth Tax Act, dismissed the Revenue's appeals and upheld the CIT(A)'s order. The Tribunal found the CIT(A)'s order well-reasoned, based on materials, and in compliance with the law.

Issue 2:
The second issue revolves around whether the land sold at Ambattur falls within the exclusion clause of Section 2(ea) of the Wealth Tax Act. The argument presented was that once a building is constructed on land, it ceases to be vacant land and should not be considered urban land for wealth tax purposes.

Issue 2 Analysis:
The CIT(A) considered the arguments presented by the assessee, the remand report, and the documents before concluding that the land sold could not be treated as urban land. Referring to the Delhi High Court's decision, the CIT(A) held that land with buildings constructed on it should not be classified as urban land for wealth tax assessment. The Tribunal concurred with the CIT(A)'s findings, emphasizing that the issue was factual, and both appellate authorities had thoroughly examined the matter before reaching a decision.

In conclusion, the High Court dismissed all tax case appeals, emphasizing that no substantial question of law arose from the factual issues considered and decided by the lower authorities.