2002 (6) TMI 25 - HC - Income Tax

Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in coming to the conclusion that the assessee is entitled to exemption under section 40(3)(vi) of the Finance Act, 1983, for the residential property on the ground that the same was used for guest house and business premise? - we are of the opinion that the Tribunal has rightly excluded the value of the property from the net wealth of the assessee. We, therefore, answer the above question in the affirmative, i.e., in favour of the assessee and against the Revenue.

Summary

The High Court of Gujarat ruled in favor of the assessee, stating that the property used for business purposes as a guest house is exempt from wealth tax under section 40(3)(vi) of the Finance Act, 1983. The Tribunal's decision to exclude the property's value from the net wealth of the assessee was upheld. (Case citation: 2002 (6) TMI 25 - GUJARAT High Court)