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TMI Blog2012 (6) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... leasehold property situated in M.G. Road, Bangalore. It has developed the said property into a commercial complex and deriving rental income therefrom. The asset in question is a business asset and is exploited for commercial purposes. The assessee claimed exemption from wealth-tax under section 2(ea) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act" for short) for the assessment years 1997-98 and 1998-99. For the assessment years 1984-85 to 1992-93, the said benefit was granted to the assessee. It is because, as per the law stood then, commercial building was not subjected to wealth-tax. However, the Wealth-tax Act was amended by the Finance (No. 2) Act, 1996, which came into effect from April 1, 1997, bringing within the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated as income under the head 'Income from house property' under the income-tax proceedings and not under the head 'Income from business' in consonance with the judgment of this hon'ble court in CIT v. Bhoopalam Commercial Complex and Industries (P.) Ltd. [2003] 262 ITR 517 (Karn) ? 3. Whether the amended provisions of section 2(ea) of the Wealth- tax Act brought into effect from April 1, 1997, is applicable to the asset of the assessee situated at M. G. Road, and the same is liable to be brought to wealth-tax ?" Though at the time of admission, the aforesaid three substantial questions of law have been framed, but the real question of law which is involved in these appeals is as contained in question of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; (i) any building or land appurtenant thereto (hereinafter referred to as 'house'), whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty-five kilometres from local limits of any municipality (whether known as municipality, municipal corporation or by any other name) or a Cantonment Board, but does not include : (1) a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or director who is in whole-time employment, having a gross annual salary of less than two lakh rupees ; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same underwent a radical change, wherein it is said that any property which is in the nature of commercial building or complex do not fall within the definition of the word "asset" as defined under section 2(ea) of the Act. It is in this background, the assessee claims that, as the asset in question is the business asset of the assessee, and as the assessee is in the business of letting out properties as is clear from the explanatory note appended to the Bill as well as the circular issued by the Central Board of Direct Taxes after passing of the amendment, the asset which he had let out did not fall within the definition of the word "asset" and, therefore, the company is not liable to pay the wealth-tax. The explanatory note and the Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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