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TMI Blog2006 (12) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... tax merely because the builder took possession after the valuation date? 2. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that since the land is in possession of the assessee, it is capable of being used as a business asset and consequently should be treated as exempt, even though it was not actually used for storage of explosives as on the valuation date?" The brief facts leading to the above questions of law are as under: The assessee is a closely-held industrial company engaged in the business of manufacture and sale of fire works. The relevant assessment year is 2001-02 and the valuation date is March 31, 2001. No wealth-tax return was filed by the assessee under section 16(1) of the Wealth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an advance of Rs. 12 lakhs on March 10, 2001. In consequence of the same, the builder has taken over possession of the land on June 4, 2001. On the above facts, the Assessing Officer held that the land was not used for the purpose of storing fire works and therefore, he included the value of the said land in the net wealth of the assessee and estimated the value of land at Rs. 14 crores being the sale value of land and completed the assessment. Aggrieved by the order, the assessee filed an appeal to the . Commissioner of Wealth-tax (Appeals). The Commissioner of Wealth-tax (Appeals) allowed the appeal and directed the Assessing Officer to delete the addition made in respect of the vacant land. Aggrieved, the Revenue filed an appeal to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24-5-2001 22-5-2001 24-5-2001 2,00,00,000 31-5-2001 Before 30-11-2001 5,00,00,000 Before 31-3-2002 6,88,00,000 ------------- Total 14,00,00,000" ---------------------------------------- There was a memorandum of understanding entered into by the assessee on March 28, 2001, and also advance was received by the assessee as stated above. As per the agreement dated May 25, 2001, the purchaser is entitled to enter the land only after the agreement date. Further, the assessee has renewed its two explosives licences up to March 31, 2002. Merely because one licence was surr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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