02 January 2013
sir, if mr.A accquire industrial plot on 01.01.2008. construction of factory is started on 30.06.2008 and is completed on 31.12.2011. now, for the valuation date 31.03.2008 & 31.03.2009 land including building under construction is exempt(exemption availabe upto 2 years) is plot of land is taxable as on 31.03.2010??(as construction not completed)
02 January 2013
You may refer the judgements in the case of CIT V Neena Jain (2010) 189 Taxman ( Punjab & Haryana ) where it was held that land does not include land occupied by a building. When construction gets started on a plot, we can not say it simply a plot. Neither we can say it a building. In Apollo Tyres' case also the same contention has been taken by the Kerala High Court. .
02 January 2013
sir that means it is a loop hole in wealth tax act because once construction started then it will never come under wealth tax and one can easily escape from wealth tax liability by showing building under construction after 2 valuation dates..
CAclubindia
