TMI Blog2003 (1) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... The authorized representative, has explained that the value of motor cars have been adopted at the insured value." 3. The assessee agitated this issue before the ld. CWT(A) relying upon the ITA 'B' Bench, Mumbai decision in the case of Samarath Knitters P. Ltd. v. Dy. CWT(sic), wherein it was held that the market value of motor cars for the purpose of Wealth Tax Act can be taken at 8096 of the insured value. The ld. CWT(A) rejected this plea on the ground that the appellant company itself disclosed the value of Rs. 14,90,600. The ld. CWT(A) decided this issue with the following observations: "In the present case, the appellant company never raised this point before the Assessing Officer that the market value of the motor cars should be taken at a discounted figure of the insured value. As this point has not been raised and contended before the Assessing Officer and it is also not a legal issue, the action of the Assessing Officer is confirmed and this ground of appeal is dismissed." 4. In the backdrop of the abovementioned facts, the ld. counsel appearing on behalf of the assessee contended that the ld. CWT(A) was not justified in not dealing with the assessee's claim on mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer that certain residential flats belonging to the assessee company were allotted for the residential purpose of its employees and accordingly such flats were exempt from the levy of wealth tax by virtue of section 2(ea)(1)(3) of the WT Act. The Assessing Officer examined the claim and found that in all there were three flats out of which one flat was allotted to an employee whose annual salary was less than Rs. 2 lakh whereas two flats were allotted to employees whose annual salary exceeded Rs. 2 lakh each. The Assessing Officer was of the view that, to the facts of the case, section 2(ea)(1)(1) of the WT Act is applicable and not section 2(ea)(1)(3) as claimed by the assessee. The Assessing Officer, therefore, brought to the charge of tax the market value of the two flats which resulted into an addition of Rs. 1,24,22,220 to the net-wealth of the assessee. The ld. CWT(A) concurred with the view of the Assessing Officer, after considering the facts and the provisions of law in detail as per discussions contained at para 3 of his order. 8. The ld. counsel submitted before us that the assessee's case is squarely covered under part (3) and therefore the ld. CWT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ea) of the WT Act. 9. The ld. DR supported the order of the ld. CWT(A) and submitted that the specific provisions of part (1) are applicable to the case of the assessee. 10. We have given a careful consideration to the rival submissions vis-a-vis relevant facts of the case and have also gone through the cases cited on behalf of the assessee. The relevant provisions of section 2(ea) may be extracted below: "2(ea)(1) any building or land appurtenant thereto (hereinafter referred to as 'house'), whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within 25 kms. From local limits of any municipality (whether known as municipality, municipal corporation or by any other name) or a cantonment board, but does not include- (1) a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or director who is in whole-time employment, having a gross annual salary of less than two lakh rupees. (3) any house which the assessee may occupy for the purposes of any business or profession carried on by him." 11. The controversy raises a very in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preme Court from page 383 : We cannot say that the legislature did not know its own mind when it used that expression in section 23A. We must give some reasonable meaning to that expression. No part of a provision of a statute can be just ignored by saying that the legislature enacted the same not knowing what it was saying. We must assume that the legislature deliberately used that expression and it intended to convey some meaning thereby." 13. Reference may also be made to Hon'ble Supreme Court decision in the case of Smt. Tarulata Shyam v. CIT [1977] 108 ITR 345. In this case, the Hon'ble Apex Court was called upon to interpret section 2(6A)(e) and 12(1B) of IT Act, 1922: The observations of the Apex Court from page 356 are reproduced below: "We have given anxious thought to the persuasive arguments of Mr. Sharma. His arguments, if accepted, will certainly soften the rigour of this extremely drastic provision and bring it more in conformity with logic and equity. But the language of sections 2(6A)(e) and 12(1B) is clear and unambiguous. There is no scope for importing into the statute words which are not there. Such importation would be, not to construe, but to amend the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods while in transit, whether incurred in India or outside India. It also prohibits allowances of weighted deduction on expenditure on the distribution, supply or provision outside India of such goods, services, etc., if incurred in India. Weighted deduction on such expenditure is, however, allowed if it is 'incurred outside India'. That being so, no weighted deduction is allowable at all on expenditure on freight and insurance whether incurred in India or outside India. It is also not allowable on expenditure incurred on account of (i) export inspection charges, (ii) brokerage, (iii) bank charges, and (iv) clearing charges incurred in India. Sub-clause (iii), which is a special provision dealing with allowance of weighted deduction on expenditure mentioned therein including expenditure on freight and insurance, will prevail over sub-clause (viii) which is a general provision and deals with 'expenditure on performance of services outside India in connection with the execution of any contract for the supply outside India of any goods, services or facilities'. Sub-clause (viii) does not deal with expenditure which has been specifically dealt with in sub-clause (iii) wherein the condi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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