Noorani Properties (P.) Ltd. v .CIT (2022)449 ITR 460 / 216 DTR 296/ 328 CTR 702 (Karn)(HC) Verde Developers (P) Ltd v .CIT (2022)449 ITR 460 / 216 DTR 296/ 328 CTR 702 (Karn)(HC) Triad Resorts and Hotels (P) Ltd v .CIT (2022)449 ITR 460 / 216 DTR 296/ 328 CTR 702 (Karn)(HC)

Wealth-Tax Act, 1957

S. 2(ea):Assets — Urban land — Agreement for sale of land to developers in December 2000 — Possession was given to buyers —Buyers conveying the land to third person in August 2007 – Value of land not assessable in hands of assessee. [ S. 2(n) 3, 16(3), 17 ]

Allowing the appeal the Court held that a combined reading of clause 10.1(g), clause 13.1, 13.2 and clause A(viii) of annexure A together with the “No objection” under Chapter XX-C of the Income-tax Act, 1961 and the letter written by Shri Dhingra  prima facie demonstrated that the developers did have power to alienate their portion of the property ; and they had entered into the property. It was a different matter if the project did not progress further. A mere failure of the project did not undo the acts of the parties. The order passed by the Tribunal was not sustainable in the facts and circumstances of this case. The value of the lands was not assessable to wealth-tax in the hands of the assessee .( AY.2004-05 to 2007-08)

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