Wealth Tax

Section (ea)(i) Provides that any land or building appurtenant thereto, whether used for:-

residential purpose, commercial purpose, for maintaining guest house, otherwise

is an asset.

Further Sec 2(ea)(v) provides that urban land is an asset.However it does not include land occupied by any building which has been constructed wirh the approval of appropriate authority

What would be the position of the land?

1. If the building has been constructed with the approval of appropriate authority?

2.If the building has been constructed without the approval of appropriate authority?

My interpretation of it is as follows

1. In case it is constructed with the approval of the appropriate authority then the building would be covered under the gambit of asset as per WT, as the case may be, and Land would qualify for the exemption.

Please refer case study CWT vs Giridhar G. Yadalam [2007] 163 taxman 372 (KAR)

2.In case the construction is without the approval of appropriate authority then the Land would continue to fall under the definition of Land as per WT even if any one constructs a farm house on such land.

Please refer case Law CIT vs R.K. Mehra [2009] 184 Taxman 286 (PUNJ. & HAR.) , Amit Lal Jindal & Sons(HUF) vs WTO [2009] 184 Taxman 143 (PUNJ. & HAR.)

Please correct me if i am wrong as i have just started studying it.