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TMI Blog2016 (1) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... he Wealth Tax return, the assessee company had not included the aircraft in the taxable net wealth on the ground that the aircraft is used in assessee's business and therefore provisions of section 2(ea)(iv) of Wealth Tax Act are not applicable in this case. The decision of Hon'ble Delhi High Court in the case of CWT Vs. Jay Pee Ventures Ltd. reported in 37 taxmann.com 348, the decision of the Mumbai Bench of the Tribunal in the case of Garware Wall Ropes Ltd. Vs. ACIT reported in 89 ITD 221 and the decision of the Pune Bench of the Tribunal in the case of sister concern namely El-O-Matic (India) Ltd. Vs. ACWT vide WTA No.19/PN/2010 for A.Y. 2005-06 was also brought to the notice of the AO to the proposition that the aircraft used in the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the order has been filed. 11. The only issue to be decided in the case is whether use of aircraft in the assesee's business is tantamount to commercial use of the aircraft for the purposes of section 2(ea)(iv) of Wealth Tax Act. The issue was decided by the Hon'ble Jurisdictional Tribunal in the assessee's favor ill the case of El-O-Matic(India) Ltd. Vs. ACWT order dated 21.10.2011. In fact, the appellant explained that El-O-Matic (India) Ltd. is a sister concern of the appellant & the Aircraft in question is jointly owned by the appellant and El-O-Matic(India) Ltd. Hon'ble ITAT has given the following findings in the case of El-OMatic( India) Ltd. which is reproduced as under: "9. The argument set-up by the Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he term "commercial purposes" has not been defined by the Wealth Tax Act - 1957. The words "used by the Assessee for commercial purposes" have to be understood to mean used by the Assessee for the purposes connected with its business. When the Assessee uses the aircrafts in connection with its business as distinct from using it for personal purposes or non-business purposes, the use of the aircraft would be a use for commercial purposes and would be thus exempt from the purview of wealth tax. 10. When the directors or executives of a company use an aircraft owned by the company to travel to its various offices or to various places for meeting or business purposes connected with the operation and activities of the company, the use of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss. Since this is the undisputed factual position, the same would be exempt from wealth tax. 13. Learned counsel for the appellant has submitted that the decision of the tribunal in Garware Wall Ropes Ltd. (supra) has not been taken up in appeal in the revenue before the Bombay High Court and has been accepted. 14. We find no infirmity in the impugned order of the Income Tax Appellate Tribunal. The appeal being devoid of merit as no substantial question of law arises for consideration and is thus dismissed with no order as to costs." 13. Respectfully following the above decisions of the jurisdictional Tribunal and the Hon'ble Delhi High Court, I hold that the value of Aircraft which is used in the appellant's business cannot be inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and the Assessing Officer be restored. 5) The appellant craves leave to add, alter amend and modify any of the above grounds of appeal." 6. We have considered the rival arguments made by both the sides, perused the orders of the AO and CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the CIT(A) following the decision of the Pune Bench of the Tribunal in the case of sister concern of the assessee namely, El-O-Matic (India) Ltd. (Supra) has held that the value of aircraft, which is used in the assessee's business, cannot be included in taxable wealth and the exception provided u/s.2(ea)(iv) of the Wealth Tax Act is attracted. The Ld. Departmental Represen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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