TMI Blog2015 (11) TMI 1115X X X X Extracts X X X X X X X X Extracts X X X X ..... ar then it is outside the ambit of taxable asset for the purpose of wealth tax. It is undisputed and indisputable that the subject mentioned property is a commercial property and not a residential property. Hence we hold that the assessee’s case does not fall under the exclusion Clause No. 4 of section 2(ea)(1) of the Act. - tenant M/s Hindustan Lever Ltd also had utilized the property for their commercial purposes. We hold that even if the property is utilized for commercial purposes by the tenant, still it is outside the ambit of wealth tax and assessee would automatically fall under the exclusion Clause No. 5 of section 2(ea)(1) of the Act. We find that this issue is covered by the coordinate bench of the tribunal in the case of ACWT vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e commercial establishment owned by it was let to M//s Hindustan Lever Ltd for its commercial purposes and hence pleaded that the subject mentioned property is outside the ambit of taxable assets as per section 2(ea) of the Act. The assessee also pleaded that the subject mentioned property is let out for a minimum period of 300 days in a year and assessee had derived rental income of ₹ 69,18,080/- and hence the property should not be subjected to wealth tax. The Learned AO however did not agree with the contentions of the assessee. The Learned AO deputed his Inspector who gave a report on 13.4.2011 that the property of the assessee company consists of 5 asbestos shaded godown and the whole area is industrial area and there is no resid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y reliance on the Learned CWTA order. 6. We have heard the rival submissions and perused the materials available on record. The facts stated hereinabove are not disputed by the either parties and hence are not reproduced for the sake of brevity. We find that the assessee had derived rental income by letting out its godown cum factory shed to M/s Hindustan Lever Ltd for more than 300 days in the previous year. Any property used for residential or commercial purposes would apparently come under the definition of assets as defined in section 2(ea) of the Act subject to some exclusions contemplated therein. The 4th exclusion provides that if the residential property is let out for a minimum period of 300 days in a year then it is outside the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er:- Assessee has office space having area 11490 Sq.ft at Mumbai. Out of this 3269 Sq.ft area was let out and remaining was used as their own office. The cost of the office space as on 31.03.2004 was ₹ 1,00,72,234/-. The proportionate value of office space which was let out comes to ₹ 28,66,913/-. Since the assessee was not using the office space having value of ₹ 28,66,913/- for its own office purpose, the same is taxable u/s. 2(ea) of W.T Act, 1957. Similarly he added an amount of ₹ 30,85,936/- on account of the same property as on 31.03.2005 to the net wealth of assessee for A.Yrs 2005-06 and an amount of ₹ 27,85,185/- as on 31.03.2007 to the net wealth of assessee for A.yr. 2007-08 on the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch of this tribunal in the case of DCWT vs M/s Hind Ceramics Pvt Ltd in WTA Nos. 42 43 (Kol) of 2010 dated 7.1.2011, wherein the ground raised before this tribunal and the decision rendered thereon are reproduced below:- 2. Under the fact and circumstances, whether the ld.CIT(A) is justified in allowing relief to the assessee when the warehouse is not being used by the assessee for its own business but by the tenant for its business. 10. we have carefully considered the submissions of the ld. Representatives of the parties and the orders of the authorities below. We have also gone through the cases cited by the ld. Representatives of the parties in support of their submissions (supra). We observe that the cases cited by the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deciding the issue before us is as under:- asset in relation to the assessment year commencing on the 1st day of April, 1993, or any subsequent assessment year, means- (i) any building or land appurtenant thereto (hereinafter referred to as house ), whether used for residential or commercial purpose for the purpose of maintaining a guest house or otherwise including a firm house situated within twenty-five kilometers 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 a director who is in whole-tim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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