Case: Anand Estate Private Limited Vs. Deputy Commissioner of Income Tax

The assessee is in the business ofThese appeals are in respect of the order passed in respect of assessment year3. There were two appeals before the Appellate Tribunal being W.T.A. 257 and 258 of 2004 for the assessment years9. The learned Tribunal has recorded a finding of fact that the godowns in question are given on rent for both assessment years under appeal and as such occupied by the lessee for their business and were not occupied by the appellants for their business. In view of this finding the learned Tribunal held, that the A.O. and the lower Appellate Authority were correct in their view to include the value of the godowns in the net wealth of the assessee.

Reasoning: From a plain and literal reading of the aboveit is clear that it is only the building or land appurtenant thereto other than building or part thereof used by the assessee for the purpose of his business or as residential accommodation for his employees and the like which would be excluded. If the asset is not used, as in the instant case, but given on lease, then the said asset would be considered for computing netis pointed out that from a reading of(1) the word house means the building occupied by the assessee for the purpose of any business or profession carried on therein. The business of the assessee it is submitted is of running a warehouse. The said building therefore, would not fall within the expression "asset" for the purpose of computing net wealth. Our attention is also invited to the explanatory notes, to the provisions of Finance Act, 1996.After hearing the learned Counsel, we are clearly of the opinion that the substitution of definition of "asset" by Finance Act 2 of 1996 with effect from 1st April, 1997, would be inapplicable in so far as the assessee is concerned. The Wealth Tax Act itself has treated a closely held company differently from other assessees for the purpose of the Wealth Tax. Once there be a specific provision in so far as closely held company is concerned which deals with the expression "asset" then the general definition would be excluded. In this case admittedly the assessee is closely held company and as such for the purpose of computing net wealth it will be the provisions of Section 40(3) of the Finance Act, 1983 which are relevant.