Supreme Court: Right to a Speedy Trial Cannot Override NDPS Act Bail Conditions  ||  SC: Relatives Cannot be Implicated in Bigamy Solely Based on Knowledge of a Second Marriage  ||  Supreme Court: Service Inam Land Attached to a Mosque Constitutes Waqf Property and is Inalienable  ||  Supreme Court: Court Cannot Order an Accused to Surrender While Denying Anticipatory Bail  ||  Supreme Court: Landlord’s Legal Heirs May Amend an Eviction Suit to Include Bona Fide Need  ||  Supreme Court: Unsuccessful Party Can Invoke Section 9 of the Arbitration Act Even After an Award  ||  Karnataka High Court: Accused Cannot be Required to Share Live GPS Location as a Condition of Bail  ||  Guj HC: Plaintiff in Specific Performance Suit Must Prove Readiness &Willingness to Perform Contract  ||  Madras HC: Transgenders are Children of God, Tragedy Lies in Society’s Blindness, Not Their Birth  ||  Del HC: False Educational Qualification Declaration does not amount to Corrupt Practice U/S 123(4)    

Bharatkumar J. Patel (Prop. of Gurumangalam International) vs. Wealth Tax Officer, Ahmedabad - (Income Tax Appellate Tribunal) (27 Jul 2022)

Certificate from Collector has to be placed by the assessee to determine that particular land comes under the urban land or agricultural land

MANU/IB/0490/2022

Direct Taxation

The assessee is an individual derives income by way of rent, interest and agriculture etc. The assessee filed return of net wealth for A.Y. 2010-11 declaring net wealth of Rs.1,39,11,000. The Assessing Officer observed that, the assessee had not included the urban land cost of Rs.2,12,98,200 and cash in hand of Rs.1,25,400 after exemption of Rs.50,000 for wealth chargeable to Wealth Tax.

The Assessing Officer observed that, the assessee had understated the wealth by treating the land at Vastrapur and Rancharda as non-urban land. The notice under Section 17 of the Wealth Tax Act, 1957 was issued. The assessment was reopened after recording reasons as per the observations of the Assessing Officer. The assessee could not submit his objection to the validity of reopening as reasons recorded for reopening were not furnished to the assessee as per the contentions of the assessee. During the course of assessment proceedings, the assessee submitted that both the said lands were non-urban land and exempt under Section 2(ea)(v) of Wealth Tax Act. The Assessing Officer concluded that the said lands were urban land and as such its value aggregating to Rs.2,12,98,200 was brought to tax. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A )dismissed the appeal of the assessee.

It is pertinent to note that, the said land and the details given by the assessee were only related to Talati Certificate which is undated. The other documents are not showing that the said land were not coming under the urban land definition. The reopening is valid which is also reiterated by the CIT(A).

The lands at Vastrapur and Rancharda were coming under the definition of urban land under Section 2(ea)(v) of the Wealth Tax Act as the documents which were produced before the Revenue Authorities and before present Tribunal clearly does not state that, these are agricultural land. The assessee contended that these are agricultural land as per the records of the Government but only document which was on record is related to Talati Certificate which is undated and is not specifying the period of agricultural activity or not specifying the agricultural produce on the said land. Whether any land comes under the urban land or agricultural land, the certificate from Collector should have been placed by the assessee but since the assessee failed to do so, it is clear that the said land is urban land and, therefore, the Assessing Officer rightly made wealth tax addition towards both of these lands. Appeal of the assessee is dismissed.

Tags : WEALTH TAX   ADDITION   LEGALITY  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved