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TMI Blog2016 (4) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... ly issue to be decided in this appeal is as to whether, the Learned CWTA is justified in bringing the warehouse to wealth tax by not treating the same as a commercial establishment warranting exemption u/s 2(ea)(i)(5) of the Act , in the facts and circumstances of the case. 3. The brief facts of this issue is that the assessee filed its return of wealth for the Asst Year 2006-07 by declaring taxable wealth of Rs. 23,58,300/-. The Learned AO computed the net wealth of the assessee at Rs. 4,12,95,000/- by making an addition towards warehouse at Kandla Port used by the assessee for the purpose of business by holding the same as an asset chargeable to wealth tax u/s 2(ea) of the Act. The Learned AO observed that the assessee owned a warehouse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Aggrieved, the assessee is in appeal before us on the following grounds:- "On the facts and circumstances of the case, the learned Commissioner of Income Tax (A) erred in affirming the Assessing Officer's computation of net wealth of the assessee at Rs. 4,12,95,000/- as against the net wealth of Rs. 23,58,300/- returned by the assessee, and ignoring the fact that the concerned warehouse is a commercial establishment u/s. 2(ea)(i)(5) of the Wealth Tax Act and is being used by the appellant for its own business activity specified u/s. 80IB." 4. We have heard the rival submissions and perused the materials available on record. The facts stated hereinabove remain undisputed and hence are not reiterated for the sake of brevity. The only dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted out before us that the said tribunal decision has been set aside by the Hon'ble Bombay High Court in Wealth Tax Appeal No. 2807 ,2808, 2925, 2926 and 3421 of 2010 dated 16.6.2011 in the case of Nutan Warehousing Co P Ltd, Pune vs CWT, Pune, wherein the questions raised and decision rendered thereon are as below:- 2. The question raised in these appeals is, whether ITAT was right in holding that the warehouses used in warehousing business are assets within the definition of 2(ea) of the Wealth Tax Act, 1957. In the income tax proceedings in the assessee's own case, this Court by its decision dated 18/12/2010 reported in 326 ITR 94 (Bom) remanded back the matter to the assessing officer to consider the question as to whether the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in the case of Satvinder Singh vs DCIT reported in (2007) 109 ITD 241 (Pune) and held as under:- "ITAT, Pune Bench has also considered a similar issue in the case of Satvinder Singh -vs.- DCIT [2007] 109 ITD 241 (Pune). In the said case, the assesee owned four commercial properties and let out the same to different business entities. The assessee excluded let out properties from computation of net wealth on the reasoning that the subject properties did not fall within the definition of "assets" as per specific exclusion under section 2(ea)(i)(5) and, therefore, they were in the nature of commercial establishments/ complexes which were not chargeable to wealth-tax. The Assessing Officer rejected the assessee's claim by holdin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to business purposes. Hence the assets, i.e. godowns under consideration are relating to business or trade. Since after the amendment, it is not necessary that the item of assets should be used by the assessee himself for its business or trade. As observed hereinabove, the nature and purpose of use of the property is commercial, whether it is used or occupied either by the assessee himself or by anybody else for the purpose of any business or profession carried on. The Department has not brought any evidence on record that the godowns, under consideration, let out on rent have not been used for commercial purposes. On the other hand, it is a fact that the godowns are to be used only for commercial purposes. Therefore, the godowns, which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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