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2017 (9) TMI 1240 - HC - Wealth-taxWealth tax assessment - Whether the Scindia House Property of the Respondent-Assessee is its ‘business asset/stock-in-trade’ and cannot form part of its ‘wealth’ for the purposes of the WTA?" - whether the amendment to sub-section 3 of Section 40 by the Finance Act, 1988 (FA 1988) by way of insertion of a proviso to the same is clarificatory and hence retrospective in nature?” - Held that:- The Assessee has accepted that from AY 1990-91 the income earned by it from the Scindia House property is not its business income. Applying the rule of consistency as explained by the Supreme Court in Radhasoami Satsang v. Commissioner of Income Tax (1991 (11) TMI 2 - SUPREME Court), as further explained by this Court in Mool Chand Khairati Ram v. DIT (2015 (7) TMI 922 - DELHI HIGH COURT) it must be held that even for AYs 1984-85 onwards till AY 1990-91 the Scindia House property cannot be considered to be the Assessee's stock-in-trade. In other words even for the said AYs, the Scindia House property formed part of the Assessee's net wealth for the purposes of the WTA. For the above reasons, the Court holds that the ITAT erred in holding by its orders dated 27th December 2004 and 12th January 2005 that the Scindia House property was the Assessee's stock-in-trade and was therefore to be excluded from its net wealth for the purposes of the WTA. Is the amendment to Section 40 (3) retrospective? - Held that:- The additional question for AYs 1984-85 to 1988-89 is answered in favour of the Revenue and against the Assessee by holding that the amendment to Section 40 (3) of the FA 1983 by the FA 1988 is not retrospective and will not apply to a period prior to 1st April 1989.
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