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TMI Blog2015 (6) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... though applied for permission later to municipal authorities - once construction activity commenced in the land ceases its character as a vacant land and it cannot be treated as a nonproductive asset and such land cannot be brought to wealth tax. Thus, we hold that the land situated in survey no.154 and 154/3 is not liable to wealth tax. Therefore, the ground raised by the assessee in both the appeals on this issue is allowed. As regards, Commissioner of Income Tax (Appeals) not being not justified in sustaining the action of the Assessing Officer in bringing to wealth tax assessment a sum of ₹ 2,51,610/- and ₹ 8,16,796/- being value of land and building at Tiruchengode Road and at SIDCO Industrial Estate respectively as both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Brief facts are that Assessing Officer while completing the wealth tax assessments for these two assessment years brought the land at Salem road, Namakkal in survey no.154 and 154/3 to wealth tax on the ground that assessee has applied for construction of building on 4.4.2005 and got approval only on 18.4.2005, though the assessee furnished bills, vouchers in respect of materials purchased such as iron, cement, sand, labour charges, lorry freight etc.used for construction of building in the land. The said assessments were affirmed by the Commissioner of Income Tax (Appeals) agreeing with the view of the Assessing Officer that assessee has not started any construction during the said assessment years against which the assessee in appeal be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own huge construction expenses during the assessment years 2005-06 and 2006-07 in the income-tax returns and they were all accepted by the Department. It is not in dispute that assessee has furnished bills and vouchers for the materials purchased such as steel, cement, sand, iron, labour expenses, lorry freight etc. for completing construction of the building. The only reason for bringing to wealth tax of the property is that assessee has applied for construction to the municipal corporation on 4.4.2005 and got approval only on 18.4.2005. In our view, this alone cannot be a ground for bringing the property to wealth tax when in fact the assessee has started constructing the building on the sites earlier, though applied for permission later ..... X X X X Extracts X X X X X X X X Extracts X X X X
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