2016 (9) TMI 243

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..... R Per Smt. P. Madhavi Devi, J. M. This is Revenue's appeal for the A.Y 2006-07. In this appeal the Revenue is aggrieved by the order of the CIT (A) in deleting the wealth assessed at Rs. 65,69,950 without giving any opportunity to the AO to rebut the additional evidence filed by the assessee before the CIT (A). 2. Brief facts of the case are that the assessee company did not file the wealth tax .....

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..... l land and therefore, is not amenable to the wealth tax. The CIT (A), after considering the assessee's contentions, has accepted that the said land is agricultural land and therefore, is not covered as "urban land" as per section 2(ea) of the Wealth Tax Act, 1957. She also observed that as per the Memorandum of Association of the assessee, the assessee is a registered company and its purpose is to .....

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..... the AO, the CIT (A) ought to have verified the evidence filed by the assessee either by herself or should have called for a remand report from the AO. But since the CIT (A) has deleted the wealth tax demand raised by the AO, in violation of the provisions of Rule 5A of the Wealth Tax Rules, he prayed that the issue may be remanded to the file of the AO for verification of the evidence filed by the .....

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..... ) 40 CCH 0584 Ahd Trib, wherein it was held that if the assessee is in a posiion to estabilsh the character of the land as an agricultural land, although it is within the municipal limits, then such agricultural land cannot be treated as "urban land" so as to consider it as an "asset" for wealth tax purposes. 6. Having regard to the rival contentions, we find that the asset considered for wealth .....

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..... e issue to the file of the AO only for verification as to whether the said land is agriculture land and falls within the meaning of "urban land" u/s 2(ea) of the W.T. Act or not. Needless to mention that the assessee shall be given a fair opportunity of being heard. 7. In the result, Revenue's appeal is treated as allowed for statistical purposes. Order pronounced in the Open Court on 24thAugust .....

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