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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice R. SURESH KUMAR, C.SARAVANAN, J
Commissioner of Wealth Tax Chennai – Appellant
Versus
Express Infrastructure (P) Ltd. – Respondent
JUDGMENT :
R. SURESH KUMAR, J.
The aforestated Tax Case (Appeals) were admitted on the following Substantial Questions of Law :
"(i) Whether on the facts and circumstances of the case, the Tribunal was right in holding that the land remained vacant land in as much as the construction of the building was not completed as on relevant valuation date the said land would not be liable to be charged for wealth tax under Section 2(ea) of the Wealth Tax Act?
(ii) Whether the assessee would be entitled to exemption under the Wealth Tax Act, if the building construction is not completed by the end of relevant previous year as the building was under construction as a business asset?
(iii) Whether the land on which a complete building would alone qualify for exemption or not ?
(iv) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee's 'vacant urban land' is not an 'asset' and not liable to tax under Section (ea) of the Wealth Tax Act?
(v) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that even a 'building under construction' exempts the land being assessed as 'vacant urban'fro
Only land with completed buildings qualifies for exemption from wealth tax; land under construction is considered urban vacant land and subject to tax.
An irrevocable power of attorney does not transfer ownership; the land remains liable for wealth tax unless formally vested in the Government post-ULC proceedings.
The central legal point established in the judgment is the interpretation of the ownership and possession of urban land under section 2(ea) of the Wealth Tax Act, 1957, and its application to the tra....
The court established that the exemption notification dated 27.05.1998 provided specific exemption for both land and building, and the liability to pay tax on land and building commencing operation i....
Exemption orders under Section 20(1) of the Urban Land Ceiling Act remain valid post-repeal if no violation of conditions occurs, rendering withdrawal attempts unlawful.
The liability for property tax remains with the original owner despite property transfer, and the rateable value should reflect reasonable market conditions, adjusted to Rs.200/sq.mtr.
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