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TMI Blog2015 (10) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... Namoli, Surajpur land and building at Surajpur, flat at Goa and outstanding balance. The CIT(A) has granted part relief to the assessee. The grounds of appeal taken by the Revenue and the assessee read as under: Revenue's grounds of appeal: 1. "The ld. CIT(A) erred in law and on facts in deleting the addition on account of Flat at Goa amounting to Rs. 50,00,000/- to the net wealth of the assessee. 2. The ld. CIT(A) erred in law and on facts in deleting the addition of various balances shown with various parties amounting to Rs. 80,89,909/-." Assessee's grounds of appeal: 1. "That on the facts and circumstances of the case and in law, the order of ld. Commissioner of Wealth Tax (Appeals)-1, New Delhi (hereinafter referred to as the CWT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d only one flat at Goa which was a residential property. Section 5(1)(vi) of Wealth Tax Act provides an exemption to one house or a part of a house or a plot of land under the section for an individual or HUF. In the given facts and circumstances the assessee deserves for this exemption. The Revenue has failed to bring any contrary facts on the grounds. 2.2 Keeping all these facts in view, we find no infirmity in the order of the CWT(A). We dismiss this ground of Revenue's appeal. 3. In the second ground of appeal the Revenue has raised the issue of deleting the addition of outstanding balances with various parties amounting to Rs. 80,89,909/-. This addition was made by Wealth Tax Assessing Officer by observing that the assessee has faile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roperties were never considered taxable wealth in the preceding and succeeding years. He also submitted that the AO has estimated the value of factory land at Namoli at Rs. 50 lacs and the factory land and building at Rs. 10 lacs on the ground that no business activity was carried out by the assessee at Namoli, Surajpur Unit. He submitted that the value of any building is chargeable to tax u/s 2(a)(i) of the wealth tax while urban land is chargeable to tax u/s 2(ea)(v) of the Wealth Tax. Therefore, both these issues need to be considered separately. The value of factory land estimated by the AO at Rs. 50 lacs was under litigation. Proceedings under the Land Acquisition Act were initiated by the Government in this regard. The assessee has fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the business was temporarily suspended, therefore, no manufacturing was carried out during the relevant period. However, submitted that the words used in section are "assessee may occupy for the purpose of any business or profession carried on by him". He submitted that in view of the language used in the section, the temporary suspension of business would not render the assets taxable to wealth tax. Alternatively he also pleaded that the value adopted by the AO was not based on any valuation report of any qualified values. It was based on arbitrary and wild estimate. He pleaded to restore issue to the file of AO to be decided denovo. 6.1 We have heard both the sides, after hearing we are of the view that for estimating value of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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