SIGN IN SUBSCRIBE

News Update

PM-STIAC discusses accelerating Industry-Academia Partnership for Research and InnovationIndia, Singapore hold dialogue over cyber policy44 bids received under 10th Round of Commercial Coal Mine AuctionsCops arrest former Dy PM of Nepal in cooperative fraud casePuri highlights India's Petrochemical potential at India Chem 2024UN reports record high cocaine production in ColombiaMinister unveils 'Aviation Park' showcasing India's Aviation HeritageED finds PFI wanted to start Islamic movement in IndiaBlocking Credit - Rule 86ASEBI says investors can use 3-in-1 accounts to apply online for securitiesI-T- Penalty u/s 271(1)(b) need not be imposed when assessee moved an adjournment application & later complied with notice u/s 142(1): ITAT4 Kanwariyas killed as vehicle runs over them in Banka, BiharI-T- Accounting principles do not prescribe maintaining of a day-to-day stock register, and the books of accounts cannot be rejected on this basis alone: ITATUN food looted and diverted to army in EthiopiaCus - Alleged breach of conditions for operating public bonded warehouse; CESTAT rightly rejected allegations, having found no evidence of any such breach: HCUS budget deficit surges beyond USD 1.8 trillionST - Onus for proving admissibility of Cenvat Credit rests with service provider under Rule 9(6) of the Cenvat Credit Rules, 2004: CESTATIf China goes into Taiwan, Trump promises to impose additional tariffsRussians love Indian films; Putin lauds BollywoodCus - Classification of goods is to be determined in accordance with Customs Tariff Act & General Interpretative Rules; Country-of-Origin Certificate may offer some guidance, but cannot solely dictate classification: CESTATCus - Benefit of such Country-of-Origin certificates cannot be denied if all relevant conditions are met under the applicable Customs Tariff rules: CESTATCuban power grid collapses; Country plunges into darknessCus - As per trite law, merely claiming a classification or exemption does not constitute mis-declaration or suppression - any misclassification does not equate to willful intent to evade duty: CESTATKarnataka mulling over 2% fee on aggregator platforms to bankroll gig worker welfare fundCus - Extended limitation cannot be invoked in case of assessee who is a regular importer with a consistent classification approach: CESTAT
 
Wealth Tax - Whether if building under construction is not to be treated as asset chargeable to tax, then land on which construction was commenced will have to be included in assets under clause (v) - YES: HC

By TIOL News Service

AHMEDABAD, JUNE 29, 2016: WHETHER if the building under construction is not to be regarded as an asset chargeable to tax, then the land on which the construction was commenced will have to be included in the assets under clause (v). YES is the verdict.

Facts of the case

The assessee is a company. AO had assessed the total income of the assessee at Rs. 1,50,66,500/- vide his order dated 13.03.2006 as against the returned income of Rs. 1,10,696/- in case of AY 2001-02 and Rs. 1,58,59,922/- as against the returned income of Rs. 82,036/- vide order dated 13.03.2006 so far as AY 2002-03 was concerned. The assessee challenged the said order by filing appeals before CIT(A) Baroda who vide order dated 24.01.2007 allowed the appeals. On further appeal, Tribunal allowed the appeals filed by the department and set aside the order passed by CIT(A) thereby upholding the order of AO.

Held that,

++ the Tribunal was justified in reversing the order passed by CIT(A). Identical issue had come up before HC by way of Wealth Tax Reference No. 267 of 1996. In view of the above, we are of the opinion that the Tribunal was justified in holding that the CIT(A) was not justified in excluding the land on which building was under construction from the purview of charge to wealth-tax. This Court vide the aforesaid decision has held that if the building under construction is not to be regarded as building then the land on which the construction is started will have to be included in the assets under clause (v) because land mentioned therein does not carry any qualification or the adjective vacant and that even otherwise the land does not lose its value as an asset simply because construction is started thereon. We are in complete agreement with the reasonings adopted by the Tribunal. In the premises aforesaid, question raised in the present appeals is answered in favour of revenue and against the assessee. The impugned order passed by the Tribunal is confirmed. Appeals stand dismissed accordingly.

(See 2016-TIOL-1237-HC-AHM-WT)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri Samrat Choudhary, Hon’ble Deputy CM & FM of State of Bihar, delivering inaugural speech at TIOL Tax Congress 2024.

TOP NEWS


AR not Afar by SK Rahman

VISION 360



Justice A K Patnaik, Mentor to Hon'ble Jury for TIOL Awards 2024, addressing the gathering at the event.

TII LATEST

TIOLCORPLAWS LATEST