Case Law Details
Noorani Properties (P) Ltd Vs The Commissioner of Wealth Tax BMTC Building (Karnataka High Court)
Held that appellant has transferred the land to the developer through JDA and the developer had power to alienate their portion of property. Accordingly, property so transferred is not subject to wealth tax.
Facts-
The Assessing Authority took up appellants’ cases for scrutiny assessment and issued Notices under Section 17 of the Wealth Tax Act, 1957 for the Assessment Years 2004-05 to 2006-07. In response to the Notices, appellants filed ‘NIL’ returns. The Assessing Authority initiated proceedings and passed orders under Section 16(3) read with Section 17 of the Wealth Tax Act. Appellant challenged the Assessing Authority orders before CIT(A) and the same were partly allowed.
Being aggrieved, the appellant approached the ITAT. ITAT dismissed those appeals. Accordingly, the appellant has preferred the present petition mainly on the ground that whether Learned Tribunal was correct in law in holding perversely that the appellant continued to be the owner of urban land despite the fact that the appellant, after transferring the land to the developer through JDA dated 05-12-2000 retained only the right to receive 15.3% of the total built up area which does not fall within the definition of ‘assets’ u/s 2(ea) of the Wealth Tax Act.
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