TMI Blog1992 (11) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... tances of the case, the Tribunal Was right in holding that the amendment to section 40(3)(vi), Finance Act, 1983, by the Finance Act, 1988, was declaratory of the law as it always was and that it had retrospective operation for the assessment pertaining to 1984-85 and 1985-86 ?" The questions arise in connection with the wealth-tax assessment for the assessment years 1984-85 and 1985-86. In I. T. R. C. Nos. 184 to 187 of 1982 Santosh Enterprises v. CIT [1993] 200 ITR 353, decided on September 29, 1988, a Bench of this court held that a cinema theatre is plant for the purpose of the Income-tax Act, 1961. The same reasoning would govern the case under the provisions of the Wealth-tax Act also. Consequently, the first question is answered in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section (as it appeared in the Finance Bill, 1983 ) is as follows : "(3) The assets referred to in sub-section (2) shall be the following, namely : (i) gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals ; (ii) precious or semi-precious stones whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel ; (iii) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel; (iv) utensils made of gold, silver, platinum or any other precious meta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g proviso shall be added, namely:- 'Provided that nothing in this clause shall apply to any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him ; (c) for clause (vi), the following clauses shall be substituted, namely : '(vi) building or land appurtenant thereto, other than building or part thereof used by the assessee as factory, godown, warehouse, cinema house, hotel or office for the purposes of its business or as a hospital, creche, school, canteen, library, recreational centre shelter, rest-room or lunch room mainly used for the welfare of its employees or used as residential accommodation, except as provided in clauses (via) and (vib), and the land appurtenant to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x. In other words, a cinema house is specifically excluded from being a constituent of the wealth by virtue of the amendment introduced under the Finance Act, 1988. According to the assessee, this amendment was by way of substituting a new provision which itself is indicative of the provision being curative or declaratory of the existing law. The Appellate Tribunal has accepted this contention of the assessee. Consequently, the cinema theatre was excluded from the taxable assets. As per clause (vi) of sub-section (3) of section 40, which was enacted initially, any building or part thereof used by the assessee as factory, godown, warehouse, hotel or office for the purpose of the assessee's business, etc., were excluded while computing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court at page 351 reads thus : ".....It is well-settled that if a statute is curative or merely declares the previous law retroactive operation would be more rightly ascribed to it than the legislation which may prejudicially affect past rights and transactions." In the instant case, no right would be prejudicially affected by the interpretation which is sought to be attributed to the amended provision by the assessee. In Sha Chunnilal Sohanraj v. T. Gurushantappa [1972] 1 Mys. L. J.327, it was stated that, when an amending Act has stated that the old sub section has been substituted by the new sub-section, the inference is that the Legislature intended that the substituted provision should be deemed to have been part of the Act f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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