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TMI Blog2018 (4) TMI 1560X X X X Extracts X X X X X X X X Extracts X X X X ..... e of convenience as under. 2. The first issue is related to the exemption claimed by the assessee u/s 2(ea) of the Wealth Tax Act relating to the properties at Enikepadu and Nidamanuru. This issue is involved for the assessment years 2007-08, 2008-09 and 2009-10. During the year under consideration, the assessee owned one acre of land at Enikepadu. The assessee had declared the value of property at Rs. 7,49,500/- and submitted that the impugned land is an agricultural land, hence exempt u/s 2(ea) of Wealth Tax Act, 1957. The Assessing Officer(AO) was not convinced with the explanation offered by the assessee and observed that the land is an urban land comes within the purview of section 2(ea) of Wealth Tax Act, 1957 but not an exempt asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant details. These lands were classified as dry agricultural lands and no NALA taxes were paid in respect of the same. Explanation (1)(b) to Section 2(ea) of Wealth Tax Act is as follows : "urban land" means land situate ............. but does not include land classified as agricultural land in the records of the Government and used for agricultural purposes or land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated......." Explanation 1 to Sec.2(ea) of the Act, squarely applies to these lands. Hence, I direct the Assessing Officer to allow the claim of the appellant that these two lands are agricultural lands and not to be considered for weal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e involved for the A.Y.2008-09 and 2009-10 is with regard to the taxation of vacant land admeasuring 600 sq.yds at MLA Quarters, Yousufguda, Hyderabad for which the value of the property was declared at Rs. 2,38,00,000/-and the same was claimed as exempt u/s 5(vi) of Wealth Tax Act, 1957. The AO observed that as per proviso to section 5(vi) of Wealth Tax Act, exemption is available for plot of land comprising an area of 500 sq.meters or less, but the AO observed in the case of the assessee that the vacant land is 600 sq.yards equivalent to 502 sq.meters. Hence, held that the value of the property at Yousufguda is taxable as per Wealth Tax Act and accordingly brought to tax. 7. Aggrieved by the order of the AO, the assessee went on appeal b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot proper. In this regard, appellant submitted site plan showing the plot No.13 in Vijaya Co-operative House Building Society as per which plot area of appellant is497.30 sq. meters (594.77 sq. yards). b) Copy of the same was forwarded to Assessing Officer vide this office letter dated 13.08.2015. Assessing Officer was requested to refer the property to Department Valuation Officer to get the physical measurement of land in question done and submit the report by 25.09.2015. c) Assessing Officer in his letter dated 22.02.2016 submitted that the DVO had advised that "Office of DVO is not competent to verify the plot area with reference to neighboring boundaries. Hence it was suggested to get the physical measurements and plot area done ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Assessing Officer to delete addition of Rs. 2,38,00,000/- being the market value of Yousufguda property for Wealth Tax purposes as the extent of asset being a plot of land comprised an area of 500 sq.meters or less." 9.1. During the appeal hearing, the Ld.DR could not controvert the findings given by the Ld.CWT(A) stating that the impugned land was less than 500 sq.meters. The surveyor report establishes that the impugned land was 594.77 sq.yards which is equivalent to 497.30 sq.meters. In the immediately preceding assessment year, the AO did not make any addition with regard to the value of the property at Yousufguda. Therefore, we do not find any infirmity in the order of the CWT(A) and the same is upheld. This issue is involved f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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