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2018 (4) TMI 411 - AT - Wealth-taxTreating value of freehold land as a taxable asset u/s 2(ea) - whether the freehold land held by the assessee as vacant as on the valuation date i.e. 31.3.2009 , on which the construction has been started for setting up of its office and service centre, could be stated to be used for ‘industrial purposes’, so as to fall within the ambit of definition of ‘urban land’ and consequential exemption from levy of wealth tax? - Held that:- The expression ‘industrial purpose’ should mean , in our considered opinion, as applicable to all industries that are engaged in manufacturing as well as servicing activities. Admittedly the assessee herein is engaged in service activity. Hence we are afraid to give a restricted meaning to the expression ‘industrial purposes’ used in exception to definition of urban land in wealth tax act. On the contrary, we hold that the expression ‘industrial purpose’ has been loosely used and hence need to be given a wider import so as bring even the service industry within its meaning. The assets deployed for service activities are treated as productive assets and accordingly the construction / set up of office and service center by the assessee and used as such for its business purposes would be outside the ambit of wealth tax in the same manner in which the factory structure or manufacturing establishment is excluded and the beneath land on which such structure to come should have the same wealth tax treatment. The assessee had used the land only for its business purposes by constructing a building in the subject mentioned land and is carrying on its regular business from the said premises. Hence we hold that the land was used by the assessee only for its business purposes. - Decided in favour of assessee.
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