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2015 (11) TMI 76 - AT - Wealth-taxGuest House - Addition to wealth tax - meaning of Sec.2(ea)(i) - asset - the flat at Chennai was located near the appellant's factory and was used by its employees for accommodation purposes. - reopening of such assessments on the ground that the flat at Chennai was in the nature of guest house and therefore constituted an “Asset” under section 2(ea) of the Act, was only a conclusion arrived at on a change of opinion by the AO and on reexamination of the facts that were already on record - Held that:- Assessee had product units located across India and a factory also existed in Chennai. The flat at Chennai was visited by Assessee’s employees in connection with official work from Kolkata and Bangalore. It was used as transit accommodation for the senior executives, finance managers, administrative staff and engineers from other units. Thus the flat was used for the purpose of business of the Assessee. The decision of the Hon’ble Gujarat High Court clearly supports the contention raised on behalf of the Assessee. We therefore hold that the flat at Chennai cannot be regarded as “Asset” within the meaning of the Act. It can be seen from the provisions of the IT Act, that “Accommodation in the nature of a guest house has been given an extended meaning under Explanation to Sec.37(4) and Sec.37(5) of the IT Act. Such extended meaning cannot be applied under the provisions of the Act, especially in the context of Sec.2(ea) of the Act, defining the term “Asset” for the purpose of the Act. We are therefore of the view that the aforesaid decision of the Hon’ble Calcutta High Court cannot be applied to the facts of the present case. We are of the view that the decision rendered by the Hon’ble Gujarat High Court referred to earlier, applies to the facts of the present case. Following the said decision which were rendered on identical facts as that of the Assessee’s case, we are of the view that the value of guest house at Chennai, cannot be considered as “Asset” under the Act. - Decided in favour of assessee.
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