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TMI Blog2013 (8) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... the aircraft owned by the Assessee and used for its business would be exempt from wealth tax?" 4. The Assessing Officer vide order dated 31.03.2006 has held that the two aircrafts owned by the Assessee and used for its own business purposes were chargeable to wealth tax. The Assessing Officer while interpreting the provisions of section 2 (ea) (iv) of the Wealth Tax Act - 1957 held that aircraft being used other than for commercial purposes were chargeable to wealth tax. As per the Assessing Officer the aircraft which were either used for running the same for earning business income or held as stock in trade would be exempt from wealth tax but an aircraft used by the Assessee for its own business would not be treated as used for commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommercially operating the aircrafts for hire nor was holding the same as stock in trade but was using the said aircrafts for the purposes of transportation/travel of its directors and executives and as such the same were not being used for commercial purposes and were not exempt from wealth tax. 8. We find no merit in the submission of the Learned Counsel for the Revenue. Section 2 (ea)(iv) of the Wealth tax act, 1957 lays down as under: (ea) "assets", in relation to the assessment year commencing on the first day of April, 1993, or any subsequent assessment year means- ..... (iv) yachts, boats and aircrafts (other than those used by the Assessee for commercial purposes); 9. The term "commercial purposes" has not been defined by the We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to restrict the meaning of the words "commercial purposes" to running the same on hire or as stock in trade. 12. The use of an aircraft by the executives or directors of a company for the purposes connected with its business would amount to use by the Assessee for commercial purposes. In case the Assessee was using the aircrafts for transporting its directors or executives for excursion purposes or for personal purposes the same would not qualify as use of the aircraft for commercial purposes and would not be exempt from wealth tax. In the present case the ITAT has recorded that it is undisputed that the two aircrafts were used by the Assessee for its business. Since this is the undisputed factual position, the same would be exempt from w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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