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TMI Blog1976 (5) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... per decimal and after adding registration charges and other incidental expenses, the cost for the assessee came to Rs. 9,000 which he returned as the market value of land. The WTO was of the view that the lands in the neighbourhood had been valued at Rs. 150 per decimal in 1960-61 and at even Rs. 400 per decimal in the later years. He also noted that the assessee's land was low lying and far away from the main road. He therefore, estimated the land at Rs. 200 per decimal and completed the total wealth accordingly. 3. On appeal, the AAC found that the assessee himself had purchased land in the locality at Rs. 755 to Rs. 1,000 per decimal and he therefore considered that the WTO had given sufficient allowance for the special features of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gested that there were infirmities in the transaction so as to concluded that the assessee had paid anything less than the market value at the time of purchase. The purchase is not very far in point of time from the valuation dates on which we have to determine its value. Besides the assessee has pointed out various disadvantages, such as the low level of the lands, its inaccessibility and its surroundings which prevented it from fetching higher prices as other lands in the area. There is also much force in the contention of the assessee that the other lands taken for comparison were small pieces of land adjoining the main road which could be expected to fetch fancy prices as house sites. We are therefore, of the view that there is no reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed for construction of the house which worked out to Rs. 21,500. Similarly, in the asst. yr. 1974-75 he added back a sum of Rs. 60,200 being the difference between the amount of Rs. 86,690 spent on the construction less the amount of Rs. 26,490 taken as loans. The assessee appealed to the AAC and challenged the claim. The AAC considered the contention that a house includes an incomplete house but rejected it on the ground that an incomplete house was not fit for human habitation and could not be said to be a house. He thus confirmed the order of the WTO. The assessee appealed further against their decision. It was pointed out on behalf of the assessee that the word "house" in s. 5 should be liberally constructed and since the section refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Act. It was thus submitted that the orders of the authorities below should be confirmed. 7. On a careful consideration of the rival submissions we are of the opinion that the assessee is entitled to succeed, on this point also. The contention of both the parties do not lead us to any clear definition of a house. Sec. 5(1)(iv) of the WT Act provides that wealth-tax shall not be payable by an assessee in respect of one house or a part of a house belonging to an assessee. The contention of the assessee is that a house under construction is a part of the house within the meaning of this section. This simplification of the problem does not carry the assessee further and in fact leads to quite a different result. If an incomplete building is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capable of human occupation and this test will not have any relationship to the completion of the building, for, even an incomplete building may, in any circumstances, be, capable of and in fact be occupied by anyone. Though the dictionary meaning of expression 'house' is that it is a building for human habitation, a dwelling place, we do not think that the actual occupation or habitation of the building is a necessary criteria. As observed in the case of C. Grant vs. Langstan, 1900 A.C. 390 :— "A hundred years ago there was not must difficulty in saying what was a "house", but builders and architects have so altered the construction of houses, and the habits of people so altered in relation to them, that 'house' has acquired an artifici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apparent that the exemption provided for a pattern of investments including the provision of one house for every assessee. Therefore if the main purpose of the Act is to be effectuated the construction of houses can not be discouraged by denying the exemption in the course of such construction. Just as a growing plant can not be denied protection, a growing house also can not be denied exemption, on a narrow view that it is not yet a house. In making the assessment under the WT Act, we are bound to take into consideration all the surrounding facts obtaining as the valuation date and in so doing, we must take into account the fact that construction of this house which was taken in the asst. yr. 1973-74 and in which a substantial amount of ov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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