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TMI Blog2010 (1) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... pose of all the above-mentioned three appeals, by this judgment, in order to avoid repetition of facts. However, for facilitation, the facts have been extracted from WT Appeal No. 6 of 2004. 2. M/s Rockman Cycle Industries Ltd.-assessee (for brevity "the assessee") has filed the above-mentioned three appeals against the impugned orders of authorities, invoking the provisions of s. 27A of the WT Act, 1957 (hereinafter to be referred as "the Act"), pertaining to the relevant asst. yrs. 1996-97 to 1998-99. 3. The matrix of the facts, culminating in the commencement of, relevant for disposal of present appeals and emanating from the record, is that during the course of processing of WT returns for the relevant assessment years, it revealed that the assessee(s) had purchased pieces of the land situated in villages Narsingpur and Khandsa in the period relevant for asst. yrs. 1991-92 to 1994-95. The permission to change of the land use for industrial purpose was granted by the Department of Town and Country Planning, Haryana on 26th July, 1995 and 28th July, 1995. The assessee claimed exemption of wealth-tax in view of Explanation to s. 2(ea) of the Act. The assessing authority ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h regard to an industrial plot, would start from the date of permission to change of land use i.e., 28th July, 1995, as urged on behalf of the assessee or from the date of acquisition, as claimed by the Revenue. The relevant provision of s. 2(ea) of the Act is as under : "2.(ea) 'assets', in relation to the assessment year commencing on the ast day of April, 1993, or any subsequent assessment year, means:- (i) .............. (1)............. (2)............. (3)............. (4)............. (5) any property in the nature of commercial establishments or complexes. Explanation-For the purposes of this clause,- (a)............. (b) 'urban land' means land situate- (i) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the valuation date; or (ii) in any area within such distance, not being more than eight ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that since the assessee obtained the permission to change of land use of the industrial plot on 26th July, 1995 and 28th July, 1995 and prior to it, the assessee could not use the plot for industrial purpose, so the exemption period of wealth-tax as envisaged in Explanation to s. 2(ea) and (b) of the Act would start from that date of permission and not from the date of its acquisition, is neither tenable nor the observations of Delhi High Court in CWT vs. D.C.M. Ltd. (2005) 195 CTR (Del) 593 : (2007) 290 ITR 615 (Del) and this Court in CWT us. R.K. Mehra (2010) 228 CTR (PandH) 205 : (2009) 30 DTR (P and H) 135 : (2009) 184 Taxman 286 (P and H), in which the facts are entirely different, are at all applicable to the present controversy. 11. In CWT us. D.C.M. Ltd.'s case (supra), the question for consideration was as to whether the assessee was covered under the Explanation inserted w.e.f. ast April, 1994 retrospectively where earlier no exemption was available to the assessee in case of conversion of an urban land into stock-in-trade till the asst. yr. 1993-94, particularly when the land was acquired in the year 1980 and possession was taken on ast April, 1981 and ast April, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and as such the old structure existing is not in confirmity with law and had not been raised with the leave of any authority. In other words, on the land in question, no construction was permitted and the authorities concerned have not granted its approval so far for raising construction on that land. In either of these cases, the land would stand excluded from the definition of 'urban land' chargeable to wealth-tax. In relation to one phase, the permission was granted much subsequent to the relevant year of assessment, which as stated on record before us, had also been withdrawn and work was stopped." 12. On the peculiar facts and circumstances of that case, it was held that no substantial question of law arises for consideration of the Court, as such the appeal was dismissed, leaving the parties to bear their own costs. 13. Sequelly, in CWT vs. R.K. Mehra case (supra), it was held that farm house constructed on the farm land of the assessee could not be regarded as urban land, as no construction on such land was permissible and no question, much less substantial question of law, would arise for determination of this Court. Accordingly, both the appeals were dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. yrs. 1997-98 and 1998-99, the next submission of learned counsel that since the assessee is not using the indicated land for industrial purpose because the appropriate authority had not given a clear-cut permission to enable the assessee to use the land for industrial purpose, therefore, the land could not be included in the computation of its total wealth for the purpose of wealth-tax in the assessment year in this respect, is not only devoid of merit but misplaced as well. It is not a matter of dispute that the appropriate authority had given permission to the assessee to use the land for industrial undertaking subject to fulfillment of certain terms and conditions. It is the assessee who did not fulfill those terms and conditions to enable it to use the land for industrial purpose. It is the assessee, who did not avail the permission to change of land use to run an industrial unit because it did not fulfill the terms and conditions in this connection. Therefore, under these circumstances, the assessee cannot possibly be heard to say that the industrial purpose for which the land was purchased had vanished or no construction activity was permissible. Hence, the assessee is als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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