No exemption for commercial premises u/s.5(1)(iv) of Wealth Tax Act 1957. - Income Tax - 1200/CBDT

INSTRUCTION NO. 1200/CBDT Dated : August 11, 1978 Section(s) Referred: 5(1)(iv) Statute: Wealth Tax Act, 1957 As per Board's Instruction No.568 dated 9-7-73 exemption u/s.5(1)(iv) of the W.T.Act is available w.e.f. 1-4-72 even if the buildings are let out for commercial purposes. Inspite of these instructions, the receipt audit have been raising objections to the effect that exemption u/s.5(1)(iv) of the W.T.Act is applicable only to residential property let out or self occupied and that no exemption is available for commercial premises. The matter has been re-examined by the board and it has been decided that Instruction No.568 dated 9-7-73 does not require any change. 2. The objections raised by the receipt audit have not been accepted by the Board. However a question has arisen as to whether remedial action, as a precautionary measure, should be taken in such cases in the light of the Board instruction No. 828 dated 24-2-75. The Board have examined this question and have decided that remedial action even as a precautionary measure in such cases need not be taken. This may please be brought to the notice of all the field officers.