2014 (7) TMI 1376 - AT - Wealth tax

Wealth tax assessment - leasehold rights in the land whether be brought to Wealth Tax under the deeming provisions of Section 4(8) of the Act - HELD THAT:- Respectfully following the earlier ITAT judgements in assessee's own case the issues relating to property at Raniwala Oil Mills, property at Mangal Marg, Alwar, property at Rishikesh and property at Kush Marg, Alwar as raised by the Revenue in 1 to 3 and 5 are dismissed.

Property at Station Road, Alwar also, we see no infirmity in the order of the ld. CWT(A) as on the valuation date the property had become the commercial complex and reflected as commercial asset in the accounts of the assessee which is further evident from the fact that some of the shops were also sold. Thus the building in question was a commercial complex which is not includible in the definition of Section 2(ea)(i) of the Act. Besides, the issue in question is also covered in favour of assessee by the decision of Hon'ble Kerala High Court in the cae of Apollo Tyres Ltd. [2009 (12) TMI 572 - KERALA HIGH COURT] - Thus the ground no. 4 of the Revenue is dismissed.

Property at Nangali Khor, it has not been disputed that in lieu of assessee's two plots, the impugned plot was allotted to the assessee for 99 years lease. As per plain meaning of legal fiction of section 4(8) of the Wealth Tax Act, it applies only to leasehold right in a building and not on the land. The scope of fiction cannot be enlarged by intendment. In view thereof, we see no infirmity in the order of the ld. CWT(A) which has been passed keeping in view the plain meaning of Section 4(8) of the Wealth Tax Act and the decisions of Hon'ble Supreme Court in the case of CWT vs. Biswanath Chatterjee [1976 (4) TMI 1 - SUPREME COURT] and case of Vysya Bank Ltd. [2007 (2) TMI 161 - KARNATAKA HIGH COURT]. Thus the order of ld. CWT(A) is upheld. The ground raised by the Revenue is dismissed.