Home Case Index All Cases Wealth-tax Wealth-tax + AT Wealth-tax - 2015 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 1115 - AT - Wealth-taxExemption u/s. 2(ea) of the WT Act - whether the Learned CITA is justified in deleting the value of factory shed and godown of ₹ 8,64,76,000/- for wealth tax purposes - Held that:- assessee had derived rental income by letting out its godown cum factory shed to M/s Hindustan Lever Ltd for more than 300 days in the previous year. Any property used for residential or commercial purposes would apparently come under the definition of assets as defined in section 2(ea) of the Act subject to some exclusions contemplated therein. The 4th exclusion provides that if the residential property is let out for a minimum period of 300 days in a year then it is outside the ambit of taxable asset for the purpose of wealth tax. It is undisputed and indisputable that the subject mentioned property is a commercial property and not a residential property. Hence we hold that the assessee’s case does not fall under the exclusion Clause No. 4 of section 2(ea)(1) of the Act. - tenant M/s Hindustan Lever Ltd also had utilized the property for their commercial purposes. We hold that even if the property is utilized for commercial purposes by the tenant, still it is outside the ambit of wealth tax and assessee would automatically fall under the exclusion Clause No. 5 of section 2(ea)(1) of the Act. We find that this issue is covered by the coordinate bench of the tribunal in the case of ACWT vs Merino Exports P Ltd in [2012 (9) TMI 948 - ITAT KOLKATA] - Decided against Revenue.
|