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TMI Blog2007 (8) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... /92 from its order dated March 16, 1998, in respect of the assessment year 1987-88 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the factory building did not belong to the assessee-company as on the relevant valuation date relating to the assessment year 1987-88 and, therefore, the value thereof is not liable to wealth-tax in the hands of the assessee-company ?" 2. The facts of the case are that the assessee-respondent filed its return of wealth on June 10, 1988, showing a net wealth of Rs. 3,396, which consisted of motor cycle owned by the assessee-company. Subsequently, on being pointed out to the assessee that land was owned by it, a revised return was filed on November 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t wealth unless the building was used by the assessee as a factory. Since in the instant case the building or land was not used as a factory by the assessee but by some other person, therefore, the Assessing Officer held that the same is includible in the wealth of the assessee. The Assessing Officer in the nut shell concluded that the assessee has deliberately concealed the taxable wealth in the original return, concealed the area of the land as well as suppressed its value in the revised return. The Assessing Officer, accordingly, vide his order dated March 19, 1991, ordered that proceedings under section 18(1)(c) of the 1957 Act be initiated against the assessee and computed the wealth of the assessee as under : Value of vehicles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. The findings of the Tribunal are discernible from paragraphs 6.14 to 6.18 of its order dated March 16, 1998, which reads as under : "It would be imperative to repeat here that the hon'ble Supreme Court in the case of Nawab Sir Mir Osman Ali Khan (Late) v. CWT [1986] 162 ITR 888 had pointed out that the Legislature would remedy the hardship of the assessee in such cases if it wants to obviate the taxability of such assets in the hands of the assessee who had a more husk of title and as against the vendee had no reply of title. The Legislature has now remedied such a situation. The hon'ble Supreme Court in the case of CIT v. Podar Cement P. Ltd. [1997] 226 ITR 625 has clearly held that similar and corresponding provisions made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rucial words 'belonging to the company' and also did not interpret the correct meaning of words before deciding that leasehold interest of the assessee-company for more than six years is not covered under section 40 and simply it is covered by section 2(e) of the Wealth-tax Act. It would appear that these words 'belonging to the company' are not synonymous to 'to be the owner of the asset'. It is enough in order to bring the asset under the Finance Act, 1983, that the asset should be belonging to the company and not necessarily the company should be the owner of it. These crucial words 'belonging to the company' bear specific legal connotation." 5. The Tribunal in the aforesaid decision also relied upon the judgment of the hon'ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 53A of the Transfer of Property Act. The asset in question cannot, therefore, be treated as belonging to the appellant-company. On the facts and circumstances of the present case, the vendee will be regarded as owner of the said factory building in conformity with the principles of law laid down by the hon'ble Supreme court in the case of CIT v. Podar Cement P. Ltd. [1997] 226 ITR 625 and in the light of the discussion made in the earlier part of this order. The vendee has been accepted as owner of the factory building for purposes of income-tax assessment and depreciation on the cost of factory building has been granted to them. 7. In view of the aforesaid facts and discussion, it cannot be said that the factory building belong ..... X X X X Extracts X X X X X X X X Extracts X X X X
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