ULC A Z 440/85 86 dated 27.07.1989 determining vacant land in excess of the ceiling limits, and ordered action be taken to acquire excess land under the Karnataka Town Country Planning Act, 1961.
The appeals filed for the Assessment Years, namely, 1980 1981, 1982 1983 and 1983 1984 were disposed off by the Commissioner of Income Tax Appeals by a companymon order dated 09.01.1990 in which he made slight modifications to value adopted for Assessment Years 1981 1982 and companyfirmed the valuation of Wealth Tax Officer for Assessment Years 1982 1983 and 1983 1984.
The question that was raised for adjudication before the High Court was whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the value of the vacant land, appurtenant to the Property, should be taken at Rs.2 lakhs for the purpose of wealth tax assessment for the years in question, as having regard to the provisions of the Urban Land Ceiling Act, the maximum amount of companypensation payable to the assessee is only Rs.2 lakhs.
The Income Tax Appellate Tribunal, Bangalore passed the order dated 02.11.1993 directing the vacant land be valued at Rs.2 lakhs for each year from Assessment Years 1977 1978 to 1985 1986.
Against the order of the Tribunal, the Commissioner of Wealth Tax sought reference before the Karnataka High Court in respect of Assessment Years, namely, 1977 1978 to 1985 1986 arising out of the companysolidated order of the Tribunal in WTA Nos.315 to 317 and 485 to 490/1990 dated 02.11.1993.
The Competent Authority under the Ceiling Act had passed orders to the effect that as per Section 11 6 of the Ceiling Act, the maximum companypensation that companyld be received by the assessee was Rs.2 lakhs.
In this writ petition, the assessee also challenged the companystitutional validity of the provisions of the Ceiling Act and made an interim prayer to the effect that pending disposal of the writ petition numberification under Section 10 1 of the Ceiling Act be number issued.
Before any Notification companyld be issued under Section 10 1 of the Ceiling Act, the assessee questioned the aforesaid order passed by the Competent Authority under Sections 8 and 9 of the Ceiling Act before the Karnataka Appellate Tribunal.
For the Assessment Years 1981 1982, 1982 1983 and 1983 1984, the Wealth Tax Officer fixed the value of land and building at Rs.18.78 crores, Rs.29.85 crores and Rs.29.85 crores respectively.
Similar orders came to be passed by the Commissioner of Income Tax Appeals for the Assessment Years 1984 1985 and 1985 1986 also.
The Wealth Tax Officer adopted the value as per Settlement Commission for Assessment Years 1976 1977, 1977 1978 and 1978 1979 at Rs.13.18 crores for both land and buildings .
For the Assessment Year 1979 1980, since there was numberreport of the Valuation Officer, the Commissioner of Appeals worked out the value of the Property at Rs.19.96 crores for the Assessment Year 1979 1980, which was adopted by Wealth Tax Officer for Assessment Year 1980 1981 as well.
The appeal which was filed by the assessee before the Karnataka Appellate Tribunal against the order dated 27.07.1989 passed by the Competent Authority under the Ceiling Act was dismissed by the Tribunal on 15.07.1998.
And under the Land Ceiling Act, an embargo was placed on the assessee to sell the subject land and exercise full rights.
The issue before the Income Tax Appellate Tribunal was only with regard to valuation of vacant land attached to the Property, since the assessee had accepted the valuation in regard to residential and number residential structures within the said property area and appurtenant land thereto.
Hence given these facts and circumstances the subject land companyld only be valued at Rs.2 lakhs for wealth tax purposes on the valuation date for the Assessment Years 1977 1978 to 1985 1986.
However, in respect of appeals relating to Assessment Years 1977 1978 to 1980 1981, the Commissioner Appeals passed the orders dated 31.07.1990 accepting that the urban land appurtenant to Property be valued at Rs.2,00,000/ .
Its reasoning was that the Competent Authority under the Ceiling Act had passed an order determining that the vacant land was in excess of the ceiling limit, and had ordered that action be taken to acquire the excess land under the Karnataka Town and Country Planning Act, 1901.
When this writ petition was still pending, the Ceiling Act was repealed by Legislature with the enactment of the Urban Land Ceiling and Regulation Repeal Act, 1999 Act 15 of 1999 .
The application of the assessee before the Settlement Commission for the Assessment Years 1967 1968 to 1976 1977 was disposed of on 29.09.1988, laying down numberms for valuation of the property.
The assessee filed statement as required under Section 6 1 of the Ceiling Act on 10.09.1976.
For Assessment Year 1984 1985, the Wealth Tax Officer took the value at Rs.31.22 crores on the basis of the order passed by the Commissioner Appeals for earlier years.
As per Section 11 6 of the Urban Land Ceiling Act, the maximum companypensation that companyld be received by the assessee was Rs.2 lakhs.
In accordance with Section 30 of the Ceiling Act, the declaration dated back to 17.02.1976 on which date the Ceiling Act was promulgated in Karnataka.
Against these orders of Commissioner Appeals dated 09.06.1990, 31.07.1990 and 14.08.1990, both the assessee as well as the Revenue Department went up in appeals before the Income Tax Appellate Tribunal, Bangalore Bench, Bangalore.
The Bangalore Development Authority prepared a master plan and the planning report for development of District No.1 in which the property area is included.
The order of the Competent Authority was challenged by the assessee by filing appeal before the Karnataka Appellate Tribunal.
On 16.09.1976, he filed an application under Section 20 of the Act for exemption of his lands under the Ceiling Act to the State Government.
The factual position which existed at the time when the reference cases were to be decided by the High Court under the Act is recapitulated below The Assessment Years in respect of which question was to be determined were 1977 1978 to 1986 1987.
On the other hand, in the proceedings under the Ceiling Act, the Competent Authority passed an order No.
Simultaneously, the orders of the Wealth Tax Officer passed under the Act fixing the value of the land for different Assessment Years for the purpose of Act was also challenged by the assessee before the Commissioner Appeals .
The total extent of the property is 554 acres or 1837365.36 sq.
The Assessment Years in these appeals are 1977 1978 to 1986 1987.
The valuation of the property which is the subject matter of wealth tax under the Act is the urban land appurtenant to Bangalore Palace hereinafter referred to as the Property .
When the aforesaid reference was pending adjudication by the High Court, certain important developments took place in relation to the proceedings under the Ceiling Act.
While this application was still pending, the Urban Land Ceiling and Regulation Act, 1976 hereinafter referred to as the Ceiling Act came into force w.e.f.
The appeals filed by the assessee and the Revenue Department were heard together by the Tribunal.
The assessee was only eligible to maximum companypensation of Rs.2 lakhs under the Ceiling Act.
As per this proposal numberpart of the vacant area companyld be companymercially exploited number companyonised for residential purposes.
The Tribunal made a Statement for reference to the High Court.
Ceiling Act had companye into force w.e.f.
Any sale was null and void.
17.02.1976 and was in operation during the aforesaid Assessment Years.
The vacant land area was also number transferable under the Act.
The assessee took up the matter further before the High Court in the form of a writ petition.
17.02.1976.
The property area is within the Bangalore Urban Agglomeration, hence fell within the purview of the Act.
Fact of the matter is that such a Notification was number issued by the Government.
