Incomplete flat in a multi storied building cannot fulfilled the definition of asset under sec 2(ea) of the Act

Last updated: 29 February 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Brief facts are that during the relevant financial year 2000-01, assessee purchased incomplete flat in a multi-storied building situated at Juhu Sai Darshan, 5th N.S. Ext. Road, JVPD Scheme, Mumbai-400 049 for a total consideration of Rs.64.65 lakhs from Jay Builders, Mumbai. The assessee before the Assessing Officer as well as before CIT(Appeals) claimed that the said flat was not in a habitable condition and during the year under consideration, it has spent a sum of Rs.43.65 lakhs and Rs.6.85 lakhs for assessment year 2001-02 and 2003-04 respectively. According to ld. counsel these facts have been noted by Assessing Officer in his assessment order that assessee has invested a sum of Rs.43.65 lakhs in financial year 2001-02 and Rs.6.85 lakhs in financial year 2002- 03. But Assessing Officer treated this investment of Rs.64.65 lakhs in urban land and in view of definition of section 2(ea)(v) of the Act including in net wealth the amount invested during the year at Rs.64.65 lakhs and charged to wealth-tax.

Citation :
Shri Sanjay Krishna Hegde, Kolkata (PAN: ABEPH 5001 M) (Appellant) Vs. Assistant Commissioner of Wealth Tax,Circle-54, Kolkata (Respondent)