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2016 (1) TMI 1067 - ITAT AHMEDABAD

2016 (1) TMI 1067 - ITAT AHMEDABAD - TMI - Inclusion of industrial plots and building - wealth tax assessment - Held that:- the assessee has contended that in the Asstt.Year 2005-06, the ld.AO has included the value of the industrial plot in the net assessable wealth of the assessee under erroneous interpretation of the provisions. This addition has been deleted by the ld.CWT(A) vide order dated 20.12.2011 in Appeal No.CWT(A)/XI/32/ ACWT Cir.5/10-11. The ld.AO after taking note of the submission .....

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R For the Respondent : Ms.Urvashi Shodhan ORDER Per Rajpal Yadav, Judicial Member The Revenue is in appeal before us against the order of ld.CWT(A)-9, Ahmedabad dated 3.7.2015 passed for the Asstt. Year 2008-09. 2. Solitary grievance of the Revenue is that the ld.CWT(A) has erred in deleting the addition of ₹ 6,85,58,254/- which was added by the AO in the assessable wealth of the assessee. It represents value of industrial plots and building. The ld. counsel for the assessee, at the very o .....

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he assessee. 3. We have duly considered rival contentions and gone through the record carefully. It emerges out from the record that in response to the notice under section 17 of the W.T.Act, the assessee has filed wealth tax return on 6.5.2013. The ld.AO has issued notice under section 16(2) on 12.8.2013 of the W.T.Act. In response to the notice, the assessee has filed submission dated 30.10.2013. Such submissions of the assessee have been reproduced by the AO in his assessment order. In para 6 .....

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mined the value of the asset on rent capitalization method. On appeal, the ld.CWT(A) has followed the outcome of the Asstt.Year 2005-06 and deleted the addition. The Tribunal s order in the Asstt.Year 2005-06 on this issue reads as under: 2. The assessee company derived rental income of ₹ 68,94,644/- in respect of its property situated at GIDC Estate, survey No.434/1 and 982 by leasing the same to its associate concern M/s. Patel Alloy Steel Pvt.ltd. The A.O. was of the view that since the .....

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ted its contentions on merits as under:- 2.2 I have carefully considered rival submissions. I have also perused assessment order and the evidences submitted by Id. A.R. I have also gone through the case laws relied upon by the Id. A.R. After taking into entirety of facts in view, I am inclined to agree with the contentions of the Id. A.R. for the following reasons: (I) It is seen that net wealth is computed by rent capitalization method in respect of deemed rent against industrial properties. Th .....

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xcept those items which were specifically exempted from Wealthtax. However, after amendment only specified assets are subjected to charge towards tax and all other assets are outside the tax net. For the purpose of levy, assets are classified as two categories one as productive and other as non productive. Under the provisions of amended Act, tax is levied only on non productive assets such as residential house, urban land, jewellery, bullion, motor car etc. In the case in hand, industrial plots .....

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cover a case under sub cl.(5), it is not necessary that the property in the nature of commercial establishments or complexes should be occupied by the assessee for the purpose of any business or profession carried on by him as in the case covered by sub-cl (3). Here, the nature and purpose of use of the property is material irrespective of the fact whether it is used or occupied either by the assessee himself or anybody else for the purpose of any business or profession carried on by them, as th .....

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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. Thus, commercial establishment means some kind of place or building or shop or store where business or trade is carried on. " Since these assets were rented out to sister concern for industrial use, accordingly, in my considered view these assets are productive assets and accordingly exempt as per the provision .....

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