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2012 (4) TMI 295 - Madras High Court
Commissioner of Wealth-tax Versus Kumudum Printers P. Ltd.
Exempting the property from the wealth-tax by ITAT ignoring section 40(3)(vib) - the assessee allotted the premises to the managing director for being used as residence – Held that:- any building and the land appurtenant to such building used as residential accommodation by any director, manager, secretary or any other employee of the assessee, such employee holding not less than one per cent. of the equity share of the assessee would be entitled to exemption - in case even the manager or secretary do not hold any share, nevertheless the assessee would be entitled to exemption of the above pro- vision- the claim of the assessee for exemption should be accepted
Properties at Door Nos. 123 was leased out to the Tamilnadu Electricity Board and derived the benefits from the Board by way of installation of transformers Held that:- as benefits forms part of business and, therefore, they are entitled to exemption from wealth-tax in terms of section 40(3)(vib) of the Finance Act.
Properties at Door Nos. 123 - one of the business objects of the assessee is leasing out the properties, a portion of the factory premises was leased out to M/s. Lotus Inks, which also carries on the manufacture of inks – Held that:- fact holding that the leasing out the premises owned by a company is part of the company's business and, therefore, the asset itself having been commercially exploited, is not includible in the net wealth, the assessee is entitled to exemption – in favour of assessee.