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TMI Blog2017 (11) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... essment of advances for purchase of plots within the meaning of assets, the same cannot be treated as net wealth for the purpose of wealth tax act. In the absence of specific provision for making the advance for purchase of asset to wealth tax, we are unable to uphold the action of the lower authorities. - Decided in favour of assessee. - W.T.A. No. 1/Vizag/2016 - - - Dated:- 21-6-2017 - Shri V. Durga Rao, Judicial Member And Shri D. S. Sunder Singh, Accountant Member Appellant by : Shri G.V.N. Hari, AR Respondent by : Shri R.S. Aravindakshan, DR ORDER Per D. S. Sunder Singh, Accountant Member This appeal filed by the assessee is directed against Commissioner of Wealth Tax (Appeals)-2, {CIT(A)} Visakhapatnam WTA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ettled on 9.7.2007 by the lease deed dated 9.7.2007 and the assessment year relevant was 2008-09 (F.Y. 2007-08). According to the Ld. A.R., both the properties were not acquired by the assessee during the previous year relevant to the assessment year 2005-06, and the same are not taxable in the year under consideration. The assessee made the payments as advance and the advances made for purchase of plots are not liable for the wealth tax Act and he invited our attention to section 2(ea) of the Wealth Tax Act, wherein the definition of the assets does not include the advances for computing the net wealth. Hence, the Ld. A.R. argued that the assessing officer wrongly held that the advances given for purchase of plots as assets within the mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2005 relevant to the assessment year 2006-07 and the Noida plot lease deed was executed on 9.7.2007 relevant to the assessment year 2008-09 (F.Y. 2007-08). Thus, both the payments made to HUDA as well as Noida, constitute the advances for acquiring the plots. The issue before us is whether the advances made for purchase of plots constitute an asset or not within the meaning of section 2(ea) of the Act for the purpose of wealth tax act. We have carefully gone through the section 2(ea) of the wealth tax act, which reads as under: Section 2(ea)(i) in The Wealth Tax Act, 1957 (i) any building or land appurtenant thereto (hereinafter referred to as house), whether used for residential or commercial purposes or for the purpose of main ..... X X X X Extracts X X X X X X X X Extracts X X X X
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