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2016 (2) TMI 74

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..... ct” that wealth tax is not to be levied on productive assets. - Decided in favor of assessee. - W.T.A Nos. 45 & 46/Kol/2014 - - - Dated:- 13-1-2016 - Shri N. V. Vasudevan, Judicial Member And Shri M. Balaganesh, Accountant Member For the Appellant : Shri B.C. Jain, FCA, ld.AR For the Respondent : Shri Amitava Ray, JCIT. JCIT, ld. Sr.DR ORDER Shri M. Balaganesh, AM These appeals of the asesssee arise out of the order of the Learned CIT(A), Central-1, Kolkata in Appeal No. 144/CWT(A)C-I/CC-IV/10-11 dated 1.7.2014 for the Asst Year 2006-07 and in Appeal No. 145/CWT(A)C-I/CC-IV/10-11 dated 1.7.2014 for the Asst Year 2007-08 against the order of assessments framed u/s 16(3) of the Wealth Tax Act, 1957 (hereinafter refer .....

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..... arguments of the assessee that the subject mentioned property is a commercial complex and consequently the same is exempt from wealth tax u/s 2(ea)(i)(5) of the Act was not appreciated by the Learned AO. On first appeal, the Learned CIT(A) upheld the order of the Learned AO. Aggrieved, the assessee is in appeal before us on the following grounds:- 1. That in the facts and circumstances of the case the ld.CIT(A) erred in confirming the action of the ld.AO in initiating proceedings u/s. 147 and assuming jurisdiction u/s. 147. 2. That in the facts and circumstances of the case, the ld.CIT(A) erred in confirming the action of the ld. Assessing Officer in treating the commercial complex as an asset for the purpose of the wealth tax. .....

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..... 00/-. Hence the same could be categorised as commercial complex which has been let out for commercial purposes by the assessee. We also find that the tenant had utilized the subject mentioned property only for commercial purposes i.e using the same as godowns. We also find that the Learned CIT(A) had given a finding in his appellate order that from the documents produced by the assessee, the property was utilized for commercial purposes. We find that this fact has not been controverted by the Learned DR before us. 6.1. We find that the issue is covered by the coordinate bench decision of this tribunal in the case of WTO vs Ferrolite Products Ltd reported in (2015) 55 taxmann.com 285 (Kolkata Tribunal) . The facts before this tribunal in .....

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..... ub-clause (5) complexes or establishments are qualified with an adjective commercial . Establishment or complex, therefore, must be of a commercial in nature. The word commercial means something which is used in or related to, a business or a trade. Commercial means relates to or engaged in or used for commerce or trade. 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. The word complex means composite, compounded, multiple, manifold, multi-complex or something composed of or made of many interrelated parts, as for example, a multi-purpose building. Thus .....

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..... Legislature is that wealth-tax is not to be levied on productive assets and that is to be kept in mind. In view of the facts of this case and discussion in view of insertion of Sub-clause (5) as inserted by the Finance No. 2 Act, 1998 with effect from 1.4.89 wealth-tax is not to be levied on productive assets. Hence, in view of reasoning given above, we confirm the order of CIT(A) and dismiss both appeals of revenue. 6.2. The facts of the instant case and the decision rendered by this tribunal (supra) are identical. We hold that the subject mentioned property is a commercial complex and is a productive asset deriving rental income of ₹ 15,00,000/- per annum. It is well settled from the Memorandum explaining the provisions .....

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