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2016 (4) TMI 595 - ITAT KOLKATA

2016 (4) TMI 595 - ITAT KOLKATA - TMI - Eligibility of exemption within the meaning of section 2(ea)(i)(4) of the W.T Act on residential property of the assessee - property given on rent for more than 300 days in a year for commercial purposes - Held that:- We find from the copy of lease deed that the property in question has been let out on rent to M/s. Eli Lily & Co. (India) Pvt. Ltd w.e.f 1-6-2002, which is more than 300 days in a year. Accordingly, we hold that the assessee is entitled for e .....

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a minimum period of three hundred days in a previous year is eligible for exemption. We also find lot of force in the arguments of the ld.AR that the ld.AO having concluded that the subject mentioned property loses its status/character as residential property and gets converted into commercial property, in view of the fact that it has been let out for commercial purpose, the ld.AO ought to have granted exemption to the assessee in terms of provisions of section 2(ea)(i)(5) of the Act. In view o .....

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he Learned CWT(A), XIV, Kolkata in Appeal No. 325/CWT(A)-XIV/2011-12 dated 13-01-2014 for the Asst Year 2002-03; Appeal No. 326/CWT(A)- XIV/2011-12 dated 13-01-2014 for the Asst Year 2003-04 and Appeal No. 327/CWT(A)-XIV/2011-12 dated 13-01-2014 for the Asst Year 2004-05 against the orders of assessments framed u/s 16(3)/17 of the Wealth Tax Act, 1957 (hereinafter referred to as the Act ). WTA No.19/Kol/2014 A.Y 2002-03 (by the assessee) 2. During the course of hearing, the ld.AR of the assessee .....

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his appeal is as to whether a residential property of the assessee, which has been let out is liable for exemption within the meaning of section 2(ea)(i)(4) of the W.T Act 1957 in the facts and circumstances of the case. 5. The assessee had a residential building, which was given on rent to M/s. Eli Lily & Co. (India) Pvt. Ltd for a monthly rent of ₹ 1 lakh w.e.f 1-6-2002. The ld. AO based on the date mentioned in the TDS certificate as 13-6-2002, being the date of payment/credit of re .....

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upied by the appellant has been let out for commercial purpose for a minimum period of three hundred days and so either covered. under the provisions of section 2(ea)(4) of the Wealth Tax Act, 1957 or under section 2(ea)(5) of the said Act. 6. The Learned AR argued that the property was actually let out w.e.f. 1-6- 2002 and thereby the assessee had let out the property more than three hundred days in the previous year. Accordingly, it is outside the ambit of section 2(ea) of the W.T Act, 1957 as .....

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erial available on record. We find from the copy of lease deed that the property in question has been let out on rent to M/s. Eli Lily & Co. (India) Pvt. Ltd w.e.f 1-6-2002, which is more than 300 days in a year. Accordingly, we hold that the assessee is entitled for exemption u/s. 2(ea)(i)(4) of the W.T Act 1957. We find that the date reckoned by the ld.AO as 13/06/2002 is only the date of payment/credit mentioned in the TDS Certificate, which in our opinion should not be the determining fa .....

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s and circumstances of the case. 9. The assessee company had let out its residential property for more than 300 days in a year to M/s. Eli Lily & Co. (India) Pvt. Ltd, which was used for its commercial purposes. Based on this, the ld.AO concluded that the property loses its residential status being converted from residential to commercial property and thereby he denied the benefit of exemption by the assessee u/s. 2(ea)(i)(4) of the Act. This action of the ld.AO was upheld by the ld.CWT(A) o .....

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