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TMI Blog2016 (3) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Government and used for agricultural purposes, it cannot be treated as an ‘asset’ for the purpose of WT Act. In fact the ground raised by the Revenue is not maintainable in the sense, that linking of agricultural income to agricultural land is not required and therefore, Ld. CIT(A) is not bound to do that exercise which is not prescribed by the Act. It is the AO who should have examined these matters at the time of assessment and should have verified whether the land is classified as ‘agricultural land’ or not? Then, the question of agricultural operations comes into picture. As seen from the assessment order, AO has not even discussed, why he is treating the agricultural land as ‘asset’, and how the provisions of the Act apply. As can be seen from the above, the land is classified as agricultural land and agricultural operations were also being carried on. Since the land-in-question cannot be treated as ‘asset’ under the Wealth Tax Act, we do not see any reason to interfere with the order of the CIT(A) - Decided against revenue Addition on the valuation of buildings other than self occupied buildings - whether CIT(A) deleted the addition without linking the income from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 19/Hyd/2015 (AY. 2009-10): 3. This appeal pertains to AY. 2009-10, in which Ld. CIT(A) passed detailed order on various issues. In the assessment, AO has made additions under three heads: a. Lands claimed as agricultural land treated as capital asset; b. Buildings other than self-occupied; and c. Plot of land (vacant land). 3.1. While completing the assessment on the basis of the statement issued by assessee, Assessing Officer (AO) has brought various lands held by assessee and shown as agricultural land to treat them as taxable assets . Before the Ld. CIT(A) it was claimed that the properties under reference are agricultural lands and agricultural operations have been carried on this land and assessee has admitted agricultural income. It was claimed that addition should be deleted as the properties-in-question are not capital assets. After considering the assessee submissions, Ld.CIT(A) deleted partly, therefore Revenue is aggrieved. 4. Ground No.1 pertains to issue of taxing Agricultural lands. The order of the CIT(A) on this issue is as under: 6 . The Ground Nos. 2 to 19 relate to the addition on account of various lands held by the appellant. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is not prescribed by the Act. It is the AO who should have examined these matters at the time of assessment and should have verified whether the land is classified as agricultural land or not? Then, the question of agricultural operations comes into picture. As seen from the assessment order, AO has not even discussed, why he is treating the agricultural land as asset , and how the provisions of the Act apply. As can be seen from the above, the land is classified as agricultural land and agricultural operations were also being carried on. Since the land-in-question cannot be treated as asset under the Wealth Tax Act, we do not see any reason to interfere with the order of the CIT(A). There is no merit in the Revenue s grounds. Accordingly, the same is dismissed. 6. Ground No. 3 pertains to the addition on the valuation of buildings other than self occupied buildings. In the assessment, the share of assessee in various buildings owned by assessee has been valued and added to the net wealth. AO has not made any discussion why the addition is made. AO has increased the value as disclosed by assessee by 25% of the above assets. Ld. CIT(A) discussed each of the property as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem as part of the wealth of the appellant . 7.2 The assessment order and the submissions of the appellant are considered. It is seen from the records and income tax return that the appellant has admitted rental Income from-the properties in question and in some of the properties were under construction and were let out in later years. In view of the above, the above assets cannot be treated as assets for the purpose of wealth tax and the addition made is deleted . 7. We do not understand how the Revenue could raise the ground stating that assessee did not offer rental income and Ld. CIT(A) deleted the addition without linking the income from house property. When assessee is offering the rental income from the buildings and those properties which are not to be included as assets were included without any discussion by the AO, we are of the opinion that Ld. CIT(A) has correctly examined and deleted the addition, which cannot be made at the first instance. Since the issue is examined in detail by the Ld. CIT(A), we do not see any reason to disturb the findings. Accordingly, Revenue s ground is dismissed. 8. In the result, Revenue s appeal in WTA No. 19/Hyd/2015 is dismi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Government and used for agricultural purposes, the same cannot be treated as an asset for the purpose of WT Act. In fact the ground raised by the Revenue is not maintainable in the sense, that linking of agricultural income to agricultural land is not required and therefore, Ld. CIT(A) is not bound to do that exercise which is not prescribed by the Act. It is the AO who should have examined these matters at the time of assessment and should have verified whether the land is classified as agricultural land or not? Then, the question of agricultural operations comes into picture. As seen from the assessment order, AO has not even discussed, why he is treating the agricultural land as asset , and how the provisions of the Act apply. Since the land-in-question cannot be treated as asset under the Wealth Tax Act, we do not see any reason to interfere with the order of the CIT(A). There is no merit in the Revenue s grounds. Accordingly, the same is dismissed. 14. Ground No. 3 pertains to the addition on the valuation of buildings other than self occupied buildings. In the assessment, the share of assessee in various buildings owned by assessee has been valued at ₹ 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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