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TMI Blog1996 (11) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... had not executed any lease deed in favour of the assessee. The assessee claimed to be a licencee and contended that section 40 of Finance Act, 1983 was not applicable in his case. The assessee also relied upon decision of Hon'ble Supreme Court in the case of Nawab Sir Mir Usman Ali Khan v. CWT [1986] 162 ITR 888/28 Taxman 641 wherein it was held that for purposes of charging to wealth tax, the asset must 'belong to the assessee'. The Assessing Officer rejected this contention and brought the building to charge under the Wealth-tax Act. 3. The CWT (Appeals) accepted above contention in assessment years 1986-87 1987-88. However, for assessment year 1988-89, he found that the Wealth-tax Act was amended and Explanation 1 to section 2 of W.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . For ready reference, these provisions are reproduced below : '1(2) "For the purposes of sub-section (1), the net wealth of a company shall be the amount by which the aggregate value of all the assets referred to in sub-section (3), wherever located, belonging to the company on the valuation date is in excess of the aggregate value of all the debts owed by the company on the valuation date which are secured on, or which have been incurred in relation, to, the said assets : Provided (this proviso is not relevant) 1(3)(vi) building or land appurtenant thereto, other than building or part thereof used by the assessee as factory, godown, warehouse, cinema house, hotel or office for the purposes of its business or as a hospital, creche, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of other provisions must conform to provision of this section. Such application cannot extend or limit the scope of section 40. Sub-section (7) has above purpose to serve, but above sub-section is subject to sub-section (5). For any matter specifically provided in section 40, other provisions of the Wealth-tax Act are to be ignored and the matter decided in confirmity with section 40. In other words in case of a conflict between other sections and section 40, the provision of section 40 must prevail. Thus, sub-section recognises well accepted provision of construction of a statute that a special provision must prevail over general provision. There can hardly be any argument that section 40 is a special provision made applicable to certai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons to whom Wealth-tax Act is applicable. The Explanation appears to have been introduced to override decision of Hon'ble Supreme Court in the case of Nawab Sir Mir Usman Ali Khan and to bring in to the wealth-tax net those cases where title was imperfect due to non-execution of a registered sale-deed. But, no such Explanation was introduced in section 40 of Finance Act, 1983. The definition of net wealth remained unchanged and only aggregate value of assets referred to in sub-section (3) 'belonging to the company' could only be included in assessable net wealth. There is no reason why without any change, the decision of Nawab Sir Mir Usman Ali Khan's case would not govern such a situation. By applying above Explanation I to the case in han ..... X X X X Extracts X X X X X X X X Extracts X X X X
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