WEALTH TAX ACT, 1957

Section 2(ea)

Definition of 'asset' - Under section 2(e)(a) - Land, which is unbuiltable under any law for the time being in force, whether not an urban land -

Issue was as to whether the lands owned by assessee would fall within the definition of 'Urban Land' as defined under section 2(ea). Revenue challenged order of Tribunal holding that once the construction was not permissible, the land in question could not fall within the definition of 'urban land' under section 2(ea) of the WT Act when the assessee himself classified this property as an asset as per section 2(ea) of the WT Act. Held: Land, which is unbuiltable under any law for the time being in force, is not an urban land and as such, is not an asset within the meaning of section 2(ea) of the WT Act. Tribunal rightly took note of section 2(ea) and more particularly, Proviso to Explanation 1(b) which defines Urban Land. After noting that there was proposal to form a 100 ft. road and that no construction could be put up on the land and that apart, the land was classified as Coastal Region, Zone-II, Tribunal rightly allowed the assessee's appeal and set aside the orders passed by the lower revenue authorities. Order passed by Tribunal was perfectly legal and valid.

Followed:Pr. CWT v. Sushila Devi Kejriwal [Tax Case Appeal Nos.683 to 686 of 2019 And CMP.Nos.20476, 20477 & 20479 of 2019, dt. 1-10-2020], CIT v. Sushila Devi Kejriwal [Tax Case Appeal Nos.622 to 624 of 2018 and C.M.P. Nos. 12728 and 12729 of 2018, dt. 30-9-2020], Prabhakar Keshav Kunde v. CIT (2010) 194 Taxman 306 (Bom) : 2010 TaxPub(DT) 2216 (Bom-HC) and M. Balasubramaniam v. DCIT [WTA Nos. 7, 8 & 9/Mds/2015, dt. 19-2-2016].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09

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