Law: Wealth Tax Act, (XV of 1963)

Section: 2(5)(ii),14(2),17(1)

Law: Wealth Tax Rules, 1963

Section: 8(3)

Wealth Tax Act (AV of 1963)----Ss. 2(5)(ii), 14(2) & 17(1)---Wealth Tax Rules, 1963, R.8(3)--­C.B,R. Circular No.7 of 1994, dated 10-7-1994---C:B.R. Circular No. 11 of 1994, dated 17-7-1994---Assessee, a private limited company, purchased a plot for the purpose of construction thereon for sale or letting out but the purpose was not carried "out due to change of circumstances after lapse of 25 years---Taxability of plot being held for the purpose of construction and sale and for letting out the property---Validity---Plot in question was purchased on 14-5-1976, and since the incorporation of the Company even after lapse of almost 25 years no other transaction except purchase of the said plot had been conducted by the assessee---No further steps had been taken for its construction or its use in such a manner which could be treated as business activity---Main object of the Company as per Memorandum of the Association was to acquire, purchase or take on lease pieces of land any where in Pakistan and to construct building and structure thereon for any purpose, and generally to deal in or carry on business related to main object but the fact that nothing was done ever since the company was formed went a long way to prove that merely mentioning of business of the nature could not be made basis to attract wealth tax proceedings---Appellate Tribunal found that plot under construction was not being held by the assessee­ Company for the purposes of construction or letting out during the years under consideration and was not a taxable asset as defined in S.2(5)(ii) of the Wealth Tax Act, 1963. Civil Appeal No.K-104 of 1981; 1998 PTD 2017; 1989 PTD 1044; 2001 PTD (Trib.).1790; 1987 PTD (Trib.) 1; 1988 PTD (Trib.) 437; (1999) 79 Tax 76 (Trib.) and (59) Tax 108 ref. 1996 PTD 360; 1992 PTD (Trib.) 1187 and 1997 PTD (Trib.) 1034 rel. ORDER MRS. SAFIA CHAUDHRY (ACCOUNTANT MEMBER).--­These six appeals have been filed by a private limited company to impugned consolidated order, dated 26-6-2000 of the learned CWT(A) on the following common grounds: "The learned DCWT has erred in levying wealth tax aggregating to Rs. 6,66,265 and additional tax aggregating to Rs.1,74,895 on the…

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