9911796707
TMI Blog2012 (9) TMI 1063X X X X Extracts X X X X X X X X Extracts X X X X ..... st of agricultural lands owned by the assessee which are claimed not to be urban land within the meaning of section 2(2)(ea)(v) of the Wealth Tax Act, 1957. Sr. No Name of Village Survey No. Remarks 1. Ambali 509 + 511 Construction of Building not permissible under the law. 2. Ambali 479 3. Ambali 480 4. Ambali 176 5. Vejalpur 1037 6. Vejalpur 1038 7. Vejalpur 1044 8. Vejalpur 1050/1 9. Makarba 714 10. Makarba 715/1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S.G. Highway (ISCON Temple). Assessee has claimed that construction is not permissible hence it is not an urban land. For starting construction, formal approvals have to be obtained for getting N.A. permission and building plan approvals etc. from appropriate authority. If the assessee has not done the necessary formality to get permission for construction on the land, the character of the said plot of urban land would not change. Therefore, it is not correct to say that Ambli land is not an urban land. In Ambli and beyond that there are many residential complexes of bungalows, flats and commercial complexes etc. Hence these lands are held to be urban lands taxable to wealth tax. Total land at Ambali admeasures about 48713 sq. mtrs. Out of this land the assessee has sold 14872 sq. mtrs. Of land in December, 2003 for ₹ 44,61,600/- which works out to ₹ 300/- per sq. mtrs. Considering this the value of this plot as on 31/3/2000 is adopted at ₹ 25Q/- per sq.yds. The valuation of 48713 sq. mtrs of land is accordingly taken at ₹ 1,21,78,250/-. The assessee has furnished inaccurate particulars of net wealth and penalty proceedings are separately initiated by iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Big Bazar. On the adjoining land assessee has already constructed residential house. These lands being situated in urban area in the jurisdiction of Ahmedabad Municipality are held to be urban lands. For this land also, therefore, the same value as of the land valuation shown by the assessee (i.e. for survey Nos.1183, 1184) ₹ 850/- per sq. metr. is adopted for valuation and valued as under: i) Survey No.714 : 100% share 8397 sq. mtr. ii) Survey No.715/1 : share 2175 sq. mtr. iii) Survey No.715/2 : share 2226 sq. mtr. Total land : 12798 sq. mtrs. @ ₹ 850 per sq. mtrs. = ₹ 1,08,78,300/- Assessee has furnished inaccurate particulars of net wealth and penalty proceedings are separately initiated by issue of notice u/s 18(1)(c ) of the W.T. Act. Subject to above discussion the net taxable wealth is determined as under:- Net wealth as per return - ₹ 51,93,100/- Gandhikunj Bungalow (16,57,000-42,000/-) - ₹ 16, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The AO argued on hearing dated 28.4.2008 that this land is within 8 kms of municipal limits of AMC. ii The appellant claimed these lands exempt under the Wealth Tax Act on the ground that these lands are agricultural lands because construction is not permissible on these lands. The AO s argument has force that big residential and commercial complexes like Iscon Mall, Big Bazaar have come up on these lands and it is just a matter of time when the appellant will complete the formalities and begin construction. iii Even before these lands were incorporated in Ahmedabad Municipal Corporation limits that is w.e.f. 16.2.2006, THE Vejalpur land was under the jurisdiction of Jodhpur (Vejalpur) Nagarpalika and Makarba land was in the jurisdiction of Makarba Nagarpalika, as such these lands were within municipal limits. iv 7/12 extracts and Talati certificates given in the appellate proceedings of this case of A.Y. 2003-04 in support of the claim that these lands are agricultural lands, cannot stand above clear cut provisions of the Wealth Tax Act according to which (Explanation (b)(ii) to Section 2(ea) (v) any land would be an urban land if it falls within 8 kms from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been that these lands are exempt under the Wealth Tax Act on the ground that construction of building is not permissible on these lands. For making this submission, the assessee has placed heavy reliance on Section 65 of the Bombay Land Revenue Code, 1879 which reads as under:- 65. Uses to which occupant of land for purposes of agriculture may put his land- An occupant of land [assessed or held for the purpose of agriculture] is entitled by himself, his servants, agents, or other legal representatives, to erect farm, buildings, construct wells or tanks, or make any other improvements thereon for the cultivation of the land, or its more convenient [use for the purpose aforesaid]. Procedure if occupant wishes to apply his land to any other purpose.- But, if any occupant [wishes to use his holding or any part thereof for any other purpose the Collector s permission shall in the first place be applied for by the occupant. The Collector, on receipt of such application, (a) shall send to the applicant a written acknowledgement of its receipt, and (b) may, after due injury, either grant or refuse the permission applied for: Provided that, where the Collector fails to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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