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2016 (5) TMI 659 - ITAT HYDERABADTreatment to cars used in the business of the assessee as assets for wealth tax purpose - Held that:- There is no doubt the cars were used in the business, which are essential to run the business, which are applied in the business similar to ‘plant and machinery’. The intent of the legislature to exclude the cars which are used in the business for running them on hire. Here, these are excluded because the cars are used as ‘plant and machinery’, simply to generate revenue. Similarly in the assessee’s case, the cars are used as ‘plant and machinery’. In our considered view, when the cars are used in the business which are productive will have the same meaning as running them on hire. The rule laid down by the Hon’ble Supreme Court in the cases of CIT Vs. Kulu Valley Transport Co. P. Lyd. [1970 (4) TMI 14 - SUPREME Court] and Mysore Minerals Ltd. Vs. CIT, [1999 (9) TMI 1 - SUPREME Court] , when the situation demands and there is no clarity, the interpretation which is beneficial to the assessee must be adopted. In the given situation, there is no doubt the cars were utilized in the business to complement the revenue generation. The legislature intends to exclude these assets, as they are productive. In the given situation, the cars are productive, hence, these cars have to be excluded from the definition of assets as specified exclusion. In view of the above discussion and interpretation, the cars used in the business are considered as productive and should be treated similar to ‘plant and machinery’. In our view, these cars are not assets u/s 2(ea)(ii) of the Wealth Tax Act. Accordingly, we direct the AO to exclude these cars from the list of assets for wealth tax purpose.
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