TMI Blog2015 (5) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... its business and that it was intended to exclude only such of those buildings which are specifically mentioned as excluded in clause (vi) which are used for industrial purposes and not for all business purposes - Decision of High Court in the case of High Court [2003 (3) TMI 36 - KERALA High Court] sustained - Decided against assessee. - CIVIL APPEAL NOS. 8113-8116 OF 2004 - - - Dated:- 27-4-2015 - A.K. Sikri And Rohinton Fali Nariman JJ. For the Appellant : Mr. Yashraj Singh Deora, Adv., Mr. K. Rajeev, Adv., Mr. S. Rajjan, Adv., For the Respondent : Mr. Kavin Gulati, Sr. Adv., Mr. Arijit Prasad, Adv., Ms. Anil Katiyar, Adv., Mr. B. V. Balaram Das, Adv. ORDER The appellant company carries on the business of running a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the 1st day of April, 1984, in respect of the net wealth on the corresponding valuation date of every company, not being a company in which the public are substantially interested, at the rate of 2 per cent of such net wealth. Thus, excluding those companies in which public has a substantial interest and share holding, assets and wealth of every company is excisable to wealth tax under the aforesaid provision. Sub-section (2) of Section 40 deals with the net wealth of a company on which the wealth tax is to be levied. The assets which are referred to in sub-section (2) are specifically stipulated in sub-section (3). As mentioned above, building and land appurtenant thereto are mentioned in those assets. This is so stated in clause (vi) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it clear that insofar as factory, godown warehouse and hotel are concerned, they are specifically excluded. Likewise residential accommodation for the employees or the accommodation which is run as hospital, creche, school, canteen, library, recreational centre, shelter, rest-room or lunch room mainly for the welfare of its employees and land appurtenant to such building or part thereto is excluded. Any building or part thereto, used by the assessee as office for the purposes of its business also stands excluded. The appellant wants its case to be covered by the aforesaid category. To put it otherwise, the contention of the appellant is that the Hospital building should be treated as office which is used for the purposes of its business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... warehouse will fall within the expressions office for the purposes of its business there was no need at all for the legislature to classify the buildings for the purpose of this exclusion. That apart, the inclusion of hotel and cinema theatre in the excluded category also indicates that the legislative intention was to exclude only the buildings which are specified in clause (vi) and used for industrial purposes and in that context office for the purpose of its business must be understood in a limited sense as including only the administrative wing of a closely held company. So far as the cinema theatre is concerned apart from the building in which the cinema is exhibited there will only be a small counter in the very same building which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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