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TMI Blog2008 (2) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... n for the Appellant. A. K. Jasani with Ms. Aasifa Khan for the Respondent. JUDGMENT The judgment of the court was delivered by F.I. REBELLO, J. - These appeals arise from a common order passed by Income-tax Appellate Tribunal for the assessment years 1988-89 to 1991-92 whereby the appeals preferred by the Revenue were dismissed. In the present appeals following two questions according to revenue would arise. (a) Whether, on the facts and circumstances of the case and in law, the hon'ble Tribunal erred in confirming the order of the Commissioner of Wealth-tax (Appeals) and directing the deletion of the addition of Rs.1,56,00,000 to the net wealth of the assessee being the value of the under construction property at Ooty? ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom tax. The Revenue aggrieved by the said order preferred an appeal before the Income-tax Appellate Tribunal which came to be disposed of in September 19 th , 2003. The Income-tax Appellate Tribunal held that work in progress could not be treated as asset relying on the decision WTA-417/M/2000 and Asst. CWT v. Anjaria Estate P. Ltd. [1995] 55 ITD 53 (Ahd.). As the issues of law are common the appeals are being disposed of by a common order. 5. For the purpose of our discussion the relevant portion of section 40, as introduced by the Finance Act 1983 is being reproduced. "40(3) The assets, referred to in sub-section (2) shall be the following namely:-............. (v) land other than agricultural land; Provided that nothing i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losely held companies are able to successfully reduce their wealth tax liability to a substantial extent and in order to circumvent the tax avoidance, tax was sought to be imposed on the various assets. 7. Land ordinarily would be an asset assessable to wealth tax under section 40(3)(v). The proviso, however, sets out that it will not apply to any unused land held by the assessee for construction of a hotel for a period of two years from the date of the acquisition. What this would contemplate would be in the nature of tax holiday meaning thereby, that for a period of two years from the date of acquisition of the land on which the assessee seeks to construct the hotel it would be exempted from wealth tax as once the hotel is constructed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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