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TMI Blog2014 (8) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case and in law, the CWT(A) erred in directing the AO to delete the value of the land for Wealth Tax purposes as being exempt ujs. 2(2ea)(ii) of the W. T. Act, without appreciating the findings of the AO in the assessment order. " 2. "On the facts and circumstances of the case and in law, the CWT(A) erred in directing the AO to delete the value of the land for Wealth Tax purposes as being exempt ujs. 2(2ea)(ii) of the W. T. Act without appreciating the fact that the impugned asset is not covered under any of the exceptions denoted in the said section. " 3. "On the facts and circumstances of the case and in law, the CWT(A) erred in directing the AO to delete the value of the land for Wealth Tax purposes as be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hool. After considering the submission of the assessee, the AO held that while scrutinising the matter for the AY 2009-10 it was found in the AIR that the assessee company had entered into an agreement in the year 2006 to purchase of plot of land, that initial payment were made in November 2006, that due to legal hurdles the agreements could be executed only in 28. 02. 2007, that it was purchased for Rs. 4. 07 Crores, that the same was registered in April 2008, that stamp duty and registration fees of Rs. 45. 35 Lakhs was paid, that the above transactions were reflected in the balance sheet under the head fixed asset for the AY 2008-09, that the stand taken by the assessee was not tenable, that the assessee owned property at Veera Desai Roa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the development planned Rule had mentioned that the plot was shown as that the land reserved for public purposes i. e. R. G. to recreation ground, that the plot of land did not qualify as capital asset on which wealth tax could be levied. As a result, he directed the AO to delete the value of land computed for wealth tax purposes. 4. Before us, Departmental Representative (DR) supported the order of the AO, AR made the same submissions which are made before the FAA and the AO, he further referred to page no. 7 & 8 of the paper book issued by the municipal corporation of greater Mumbai, he relied upon the order of the Hon'ble jurisdictional High Court delivered in the case of Prabhakar Kishore Kunde(194 Taxman 306). With reference to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... building which has been constructed, if at all, with the approval of the appropriate authorities. In the maxim, generalia verba sunt generaliter intelligenda-it would be a helpful precept to interpretation of the provisions which used the words of general nature and despite the fact that it relates to law of Revenue would have to be construed generally. The intention of the Legislature appears to be that land which falls within the exception afore-referred would have to be excluded from the ambit and scope of the expression "urban land". Once the land or any building thereupon making it a combination of land and building is not an urban land, then it could not be an asset as defined under section 2(ea) of the Act. The result thereof would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (327 ITR 161, as under: "The newly added provisions of section 2(ea) by the Finance Act, 1993, were made applicable from April 1, 1993. Under this provision, the definition of "urban land" did not envelop that land on which construction of a building was not permissible under any law for the time being in force in the area where the land was situated or the land occupied by any building which had been constructed with the approval of the appropriate authority or to any unused land held by an assessee for an industrial purpose for a period of two years from the date of application. The assessee had claimed the benefit of the provision to the extent that the land could not be regarded as "urban land" because no construction was permissible o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in favour of the assessee by the decision of the Hon'ble High Court of Punjab and Haryana delivered in the case of Perminder Singh(supra). In our opinion receivable compensation cannot be taken for valuing an asset on a particular date- especially when it is not certain that the assessee would get compensation or not at the first place. Taxes cannot be levied on hypothetical situations. Respectfully, following the above referred judgment of the Hon'ble P &H High Court, we decided ground no. 3 against the AO. WTA/36-38/Mum/2012-AY. 2005-06 to 2007-08: As the issues involved in the years under consideration are similar to the issues dealt for the AY. 2004-05, therefore, following the order for that year, we decide all the three grounds ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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