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2016 (4) TMI 595 - AT - Wealth-taxEligibility of exemption within the meaning of section 2(ea)(i)(4) of the W.T Act on residential property of the assessee - property given on rent for more than 300 days in a year for commercial purposes - Held that:- We find from the copy of lease deed that the property in question has been let out on rent to M/s. Eli Lily & Co. (India) Pvt. Ltd w.e.f 1-6-2002, which is more than 300 days in a year. Accordingly, we hold that the assessee is entitled for exemption u/s. 2(ea)(i)(4) of the W.T Act 1957. We find that the date reckoned by the ld.AO as 13/06/2002 is only the date of payment/credit mentioned in the TDS Certificate, which in our opinion should not be the determining factor for deciding the date of letting out of the property. Section 2(ea)(i)(4) of the Act does not contemplate the usage of residential property only for residential purpose. We find that this section only says the residential property that has been let out for a minimum period of three hundred days in a previous year is eligible for exemption. We also find lot of force in the arguments of the ld.AR that the ld.AO having concluded that the subject mentioned property loses its status/character as residential property and gets converted into commercial property, in view of the fact that it has been let out for commercial purpose, the ld.AO ought to have granted exemption to the assessee in terms of provisions of section 2(ea)(i)(5) of the Act. In view of the aforesaid facts and circumstances of the case, we hold that the assessee is eligible for exemption u/s. 2(ea)(1)(4) as well as u/s 2(ea)(i)(5) of the Act - Decided in favour of assessee
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