TMI Blog2011 (1) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Department for assessment year 2003- 04 :- (1) Under the fact and circumstances of the case, whether the Ld. CIT(A) is justified in allowing relief to the assessee accepting that the warehouse is not an asset u/s. 2(ea)(i)(3) / 2(ea)(i)(5) of the Wealth Tax Act, 1957 and ignoring the fact that the warehouse let out by the assessee is owned by the assessee and the rental income from the same has been shown by the assessee as Income from House Property . (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. (3) Under the fact and circumstances of the case, a subst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 003-04 is also maintainable irrespective of the fact that tax effect is less ₹ 2.00 lac. 5. Now, we take both the appeals for our consideration on merits. 6. The relevant facts are that the assessee is the owner of a warehouse which is partly used as godown and machine shed for the purpose of assessee-company and the additional space available has been let out as warehouse. The assessee has shown warehousing charges received as income from house property. In view of the above, the Assessing Officer while computing net wealth for the purpose of wealth tax has taken the said asset as assessable wealth by rejecting the contention of the assessee that the said letting out warehouse portion is used by the assessee for commercial acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequent assessment year. The Ld. CIT(A) has held after the amendment by Finance Act, 1992, the moot point how the property is utilized and not who utilizes the property. It is not required that the assessee must use this property for its business purposes as a commercial establishment or complex. Even if the leasee utilized the property as a commercial establishment or complex then it will be excluded from the list of the asset. The Ld. CIT(A) has stated that the leasee utilizes part of the property for storing merchandise and pays warehousing charges to the assessee. The fact that for different years different warehousing charges have been received by the assessee strengthen the point that there is no fixed rental for warehouse. In this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. CIT(A). 9. However, the Ld. Authorised Representative for the assessee relied on the orders of the Ld. CIT(A). 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. Departmental Representative (supra) and also the case of Hon ble Madras High Court in the case of Indian Warehousing Industries Ltd. (supra) relied on by the A. O. and also reiterated at the time of hearing by Ld. Departmental Representative are not applicable herein because the assessment years involved in the case decided by H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose of maintaining a guest house or otherwise including a farm 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-time employment, having a gross annual salary or less than five lakh rupees; (2) any house for residential or commercial purposes which forms part of stock-in-trade; (3) any house which the assessee may occupy for the purpose of any business or profession carried on by him; (4) any residential property that has been let ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by them, as the case may be. In other words, the property should not be of any nature other than the nature of commercial establishments or complexes. It was held that word commercial means something, which is used in or related to a business or a trade. Commercial means relating to or engaged in or used for commerce. The word establishment means an organization, building, construction, shop, store, concern or corporation. Therefore, it was held that if an assessee owns more than one property in nature of commercial establishments or complexes, such property would be exempted from the definition of asset defined u/s. 2(ea)(i) while computing net wealth chargeable to tax under the Wealth Tax Act. 12. In the case before us, there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
