GIRODHAR G.YADALAM vs COMMR.OF WEALTH TAX

The Supreme Court interpreted Explanation 1(b) to Section 2(ea)(v) of the Wealth Tax Act, 1957, clarifying that the exclusion of 'urban land' applies only when a building is fully constructed on the land with the approval of the appropriate authority. The Court held that merely starting construction does not qualify for the exclusion, thus affirming the Karnataka High Court's view that the building must be completely erected for the land to be exempt from wealth tax. The decision reinforces the statutory interpretation of urban land under the Act.