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TMI Blog2004 (10) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... he value made by the District Valuation Officer. 5. In appeal, the learned CIT(A) made reference to the order of his predecessor for assessment years 1993-94 and 1994-95 and placed reliance on the same. He determined the value of the share of the assessee at Rs. 13,75,820 by observing as under: "I have considered the facts and circumstances of the case and also perused the orders of CIT(A)XXI, New Delhi for assessment year 1993-94 and CIT(A) XVIII, New Delhi for assessment year 1994-95, in which the value of 1/8th share of the appellant is taken at Rs. 13,75,820. Further it is seen that after detailed discussion the CIT(A) XXI in his order for assessment year 1993-94 held that the whole of the appellant's share in the property should be treated as Urban Land and brought to tax accordingly. Since the facts of the case are similar to those in earlier years, I am in agreement with the findings given in this regard by learned CIT(A) for assessment years 1993-94 and 1994-95. Therefore, it is held that the value of appellant's share in the said property be taken at Rs. 13,75,820. The appellant gets a relief of (Rs. 23,29,300 -Rs. 13,75,820) = Rs. 9,53,480." 6. At the outset the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the "excess vacant land" or any law prohibiting any construction thereon. On the contrary, the scheme of the ULCRA itself encourages construction of buildings on the "excess vacant urban land". This is further demonstrated by the subsequent approval granted by the Govt. for construction on the plots. The benefit of exemption under Explanation 1(b) to section 2(ea) of the W.T. Act is available only if construction of building is prohibited by law and not where completion of construction is delayed as in the case of the assessee." 8. Learned Sr. DR also placed reliance on the ratio of decision of Hon'ble Calcutta High Court in the case of Gouri Prasad Goenka Family (HUF) v. CWT [1993] 203 ITR 700. 9. We have carefully considered the entire material. The matter was thoroughly considered by "F" Bench of the ITAT Delhi in assessee's own case for assessment year 1993-94 vide order dated27-3-2002rendered in WTA Nos. 692 664/Delhi/96. The Tribunal after considering the facts and relevant material reversed the order of the learned CIT(A) and dismissed the appeal of the department and allowed appeal of the assessee partly. According to the Tribunal the case of the assessee clearly f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was held to be in excess of the ceiling under the said Act. It was pointed out that only 10.34 sq. mts. area in the said land remained in the share of the assessee and except this, the entire area of the plot owned by the assessee was not covered within the definition of "urban land". It was also pointed out that earlier i.e. vide order dated 14-3-1986 exemption was granted to the assessee for construction of group housing scheme but as the prescribed period of three years passed and the plan could not be sanctioned, period of exemption expired and when again application was moved for exemption in the year 1991, the authority vide order dated 7-8-1991 refused to renew the exemption granted vide letter dated 14-3-1986 and thus as on the relevant date i.e. the date of valuation, a large portion of share in the plot of the assessee remained excess vacant land on which no exemption remained in force and since it was excess vacant land construction was not permissible on it. 14. The above facts are also borne out from the statement of facts as well as from the order of ITAT Delhi Bench "F" dated 27-3-2002 rendered in WTA Nos. 662 664/Delhi/96 in the case of assessee along with other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imit, to regulate the construction of building on such land and for matters connected therewith with a view to preventing the concentration of urban land in the hands of a few persons and speculation and profiteering therein and with a view to bringing about an equitable distribution of land in urban agglomerations to subserve the common good." 19. In the case of Pushpak Grah Nirman Sahakari Samiti v. State of Madhya Pradesh AIR 1996 MP 14 as per the statement of objects and reasons the bill was intended to achieve, inter alia, measures to discourage construction of luxury housing leading to conspicuous consumption of building material and to ensure the equitable utilization of such materials. Thus, the intention of the Legislature was also to regulate construction of buildings on vacant land. 20. As per section 5, transfer of vacant land is regulated. Sections 6 to 17 lay down the machinery for acquisition of vacant land held by a person in excess of his ceiling land. The particulars of land etc. are to be given in the draft statement to be prepared as per section 8. The final statement is to be prepared as per section 9 and the same is to be published as provided in section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking over, the subsequent report cannot be accepted. He thus valued the property at Rs. 1,93,600 after considering its market value. The CIT(A) on the other hand, directed the valuation of the land under consideration to be taken at Rs. 77,000 only which was the value shown by the assessee in 1972. The Tribunal, on further appeal, restored the order of the Assessing Officer. In reference before the Hon'ble High Court, it was contended that the Tribunal failed to take into consideration the provisions of Urban Land Ceiling Act and the disadvantage of the restrictions flowing therefrom. It was pleaded by the learned counsel for the assessee that the only valuation which could have been taken in such circumstances was the compensation which was payable by the Government when the land vests in the Government under the Act, The Hon'ble High Court accepted this contention and observed as under: "We have considered the rival contentions. In our view, the Tribunal did not approach this issue from the correct angle. Whenever a person holds vacant land in excess of the ceiling limit, he cannot dispose of such land at all. It cannot be sold in the open market. It is true that the vacant la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred from the possession of the assessee or acquired by the State. According to him, so long the proceedings of acquisition are not finalized the land or the plot remains with the assessee and it is to be treated as an 'asset'. This contention of the learned DR is also not acceptable. As pointed out above, after publication of notification and in view of the provisions of section 10, the whole of the declared excess vacant land can neither be transferred nor its character can be altered. In the present case since notification had been issued the assessee did not have the power to raise construction on the land declared to be excess vacant land. Thus, the excess vacant land in the share of the assessee was urban land on which construction was not permissible and, hence, such urban land could not be treated as an 'asset' within the purview of clause (b) of Explanation 1 to section 2(ea) of the Wealth-tax Act. 27. On the basis of discussion made above, whereas issue No. 'A' is decided in affirmative, the next issue i.e. 'B' is decided in negative. 28. The next submission of the learnedSr. DRwas that exemption was granted to the assessee earlier and by virtue of this exemption she ..... X X X X Extracts X X X X X X X X Extracts X X X X
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