TMI Blog2008 (8) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... JUDGMENT The judgment of the Court was delivered by K. RAVIRAJA PANDIAN, J. - The Revenue seeks the admission of the Tax Case for the assessment years 1997-98 and 1998-99 on the following substantial questions of law:- (i) Whether the Tribunal was right in dismissing the appeal preferred by the Revenue without going into the merits of the case on the ground that the disputed tax exceeds the monetary limit prescribed in the Central Board of Direct Taxes circular dated 27.3.2000? (ii) Whether the right of appeal conferred under Section 254 of the Income Tax Act could be restricted or whittled down by the Central Board of Direct Taxes ? (iii) While the Tribunal took into consideration of the circular issued by the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As there was reason to believe that net wealth chargeable to tax has escaped assessment, proceedings were initiated under Section 17 of the Wealth Tax Act. In response to the notice under Sections 17 and 16(4) served, the assessee filed a return on 29.6.2000 admitting "nil" value of the net wealth. 3. In the note appended to the statement of wealth, the assessee stated as under:- (i) The building owned by the assessee has constructed on leasehold land. Hence, the value of the building or superstructure alone is included. (ii) Since the building is a business asset. WDV of the building has been admitted as per Rule 14 of Schedule III to Wealth Tax Act. (iii) Investment representing shares in companies and current assets are not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned by the company and the land belongs to Sri A. Sethu and it has been taken on lease and on which the building has been constructed which is duly reflected in the balance-sheet. In view of various conditions which do not give absolute right over the property and the assessee is not the owner of the land, the income cannot be treated as income from property. Further, it was argued that the main object of the company is to take land on lease and construct building and let it out as commercial complex and accordingly, the income should be assessed under the head "business income" In support of the claim, the assessee quoted the case laws in the case of Bhoopalam Commercial Complex and Industries Pvt. Ltd., Vs. CIT [2000] 72 ITD 262 (Bag. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, the Revenue is on appeals before this Court seeking admission. 11. It may be noted that this Court considered a similar issue in the decision rendered on 16.8.2007 in T.C.No.222 of 2004 ( CIT v. Associated Electrical Agencies [2007] 295 ITR 496 (Mad)). Based on Instruction 1979 in Circular F No. 279/126/98 ITJ dated 27.3.2000, referring to the statutory power under Section 119 of the Income Tax Act, 1961 under which the circular was issued, this Court held that "10.We are of the considered view that none of the exceptions stated in the circular are applicable to the facts of the present case. The circular was stated to be issued by invoking the statutory power under Section 119 of the Income-tax Act. The appeal is filed un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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