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TMI Blog2006 (1) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The sole issue in these appeals is whether the immovable property known as "Zeba Bagh" is assessable as net wealth of the assessee for the purposes of Wealth-tax Act, 1957. The learned counsel for the assessee submitted that the entire Zeba Bagh property was handed over to Malraj Co-operative Housing Society Ltd. under an agreement of sale dated 28-2-1982 after receiving full consideration and that the housing society had in turn transferred the asset to a number of its members and that those members have constructed buildings on that property. He filed a copy of assessment order dated 30-3-2005 for assessment year 2002-03 and drew the attention of the Bench to page 5 of that order and submitted that the Assessing Officer deputed an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 4 cannot be applied to these assessment years. Alternatively, he contended that under section 2( ea ) of the Wealth-tax Act, urban land is defined as that which does not include land occupied by any building which has been constructed with the approval of the appropriate autho-rity. He pointed out that the revenue authorities have found that 644 dwelling units exist in the entire area of Zeba Bagh and that Municipal authorities have been levying taxes and that the property in question is not an asset within the meaning of section 2( ea ) of the Act. Thus, he prayed that an asset which is never in the possession of the assessee and which does not belong to the assessee at all, should not have been included as an asset in computing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udible in the hands of the legal owner and not the person to whom it is sold and possession handed over. On section 4(8), he submitted that the section refers only to building and not land and that what has been brought to tax is urban land and not building and that this section does not come to the rescue of the assessee. On section 2( ea ), he submitted that only such land which is occupied by buildings constructed with the approval of the appropriate authority does not constitute urban land and that in this case these constructions were unapproved constructions and that mere levy of municipal taxes is not legalising the constructions. Referring to the assessment order passed on 30-3-2005 for assessment year 2002-03, he submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied where there is no building at all. 6. We have heard rival contentions. On a careful consideration of the facts and circumstances of the case, we are of the considered opinion that the arguments of the learned counsel for the assessee have considerable force. Section 4(8) of the Wealth-tax Act, which was stated to have been brought into the statute on 1-4-1997, reads as follows : "(8) A person ( a )who is allowed to take or retain possession of any building or part thereof in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882); ( b )** ** ** shall be deemed to be the owner of that building or part thereof and the value of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There cannot be handing over of possession of building without handing over possession of the land on which the building stand. Section 2( ea ) defines the term "asset" under the Wealth-tax Act and a look at sub-clause (1), (2), (3), (4) or (5) clearly demonstrates that wherever Legislature has used the words "residential purpose", "house", "residential property", "property in the nature of commercial establishment" etc., it means and includes the land on which they are erected. Thus, in our considered opinion, the value of Zeba Bagh property cannot be brought to tax in the hands of the assessee. 7. Even otherwise, "urban land" has been defined in clause ( b ) of Explanation 1 to section 2( ea ) of the Act, wherein it is stated as fol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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