9911796707
|
Home
Issues:
1. Determination of the value of the site for wealth tax purposes. 2. Applicability of exemption under section 5(1)(iv) of the Wealth Tax Act to the factory building. Analysis: 1. The appellant purchased agricultural lands and constructed a weaving factory on a part of the land. The Wealth Tax Officer (WTO) determined the value of the site on which the factory building was raised and included it in the wealth computed. The appellant objected to this valuation before the Appellate Assistant Commissioner (AAC). The AAC considered the location of the land and surrounding agricultural lands, determining the value per ankanam at Rs. 50, granting relief of Rs. 19,000 to the appellant. 2. Unsatisfied with the relief granted, the appellant appealed further. The appellant contended that the factory building should also be exempted under section 5(1)(iv) of the Wealth Tax Act. The Tribunal allowed the appellant to raise this additional ground, citing that there is no estoppel on a question of law. Referring to previous decisions, including a Supreme Court case, the Tribunal interpreted the term "house" under the Act to include buildings used for commercial purposes. The Tribunal applied the Supreme Court's ruling that the word "houses" in tax legislation encompasses all buildings, including factory buildings. Consequently, the Tribunal held that the entire value of the factory building, including the site value, should be exempt under section 5(1)(iv) of the Act. 3. The Tribunal allowed the appeal, finding in favor of the appellant's contention that the factory building should be exempted under section 5(1)(iv) of the Wealth Tax Act.
|
