TMI Blog1991 (5) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... command any market value and, consequently, in upholding the order of the Appellate Assistant Commissioner ?" The reference is a consolidated reference in respect of two assessees who are sisters, the cases of both the assessees being identical. The two assessees jointly acquired by purchase 100 shares of Rs. 100 each in company named M/s. Shyam Estates Pvt. Ltd. (hereinafter referred to as "the company"). The shares of the company were purchased by the two assessees from a partnership firm styled M/s. Tulsidas V. Patel. By virtue of the holding of these shares, together with a deposit of Rs. 1,80,000 and upon a further deposit of Rs. 5,000, the assessees obtained the right to occupy the whole of the fourth floor of the property known as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal to the inclusion of any amount on account of the right of occupation of the premises ; the Appellate Assistant Commissioner, accepting their contention, deleted the value thereof in computing their net wealth. In the appeal preferred by the Department, the Tribunal considered the matter in greater detail. It examined the terms of the agreement under which the assessees were entitled to occupy the premises, and took the view that the right conferred on the assessees under the agreement was only a leave and licence to use the premises and not any interest or title therein and, having regard to the nature of the licence under law, the Tribunal held that the said right was not a right of a substantial nature so as to constitute property, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ees on the valuation date, excluding the aggregate value of assets specifically excludible under section 2(n) of the Act. He pointed out that section 2(e) of the Act defines the expression "assets" as under: " 'assets' includes property of every description, movable or immovable, but does not include,-. . . " He contended that this definition is an inclusive one, and, therefore, anything that amounts to property of every description, movable or immovable, would fell within its ambit, unless specifically excluded from the definition. He, therefore, contended that it was incontestable that the right of occupation of a large premises in a prime locality in Bombay was valuable property and could not be excluded from the assessable wealth of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany, the agreement also provides that consent to such transfer shall not be unreasonably withheld. The shareholder is free to change his nominees from time to time and collect from them such compensation as he pleases. What is peculiar about the agreement is that it is to remain in force for an indefinite period till the shareholder ceases to hold the requisite number of shares. As and when the shareholder sells his share to any other person, he shall make it a condition to the purchaser that the purchaser shall pay to the shareholder the amount equivalent to the amount given by the said shareholder for deposit with the company and, after receiving information from the shareholder, the company shall transfer the amount of deposit in its b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recent judgment delivered, by us on April 25, 1991, in Incometax Reference No. 108 of 1977 and Income-tax Reference No. 216 of 1977 (Shree Nirmal Commercial Ltd. v. CIT [1992] 193 ITR 694), we had occasion to consider a somewhat similar situation, though in the context of the Income-tax Act. Although, in the said cases, the deposits were refundable, considering the indefinite period for which the deposits were to be held, we have taken the view therein that such deposits were really in the nature of consideration for sale of the occupancy right of premises. In the present cases also, we are of the view that, despite the assertion in the agreement between the company and the shareholder that the agreement created no interest whatsoever in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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