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TMI Blog1985 (2) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... and, therefore, his share of interest in the property was assessed at Rs. 40,000 each for the assessment years 1978-79 and 1979-80. 2. Before the AAC it was contended by the assessee that the expression 'house' could be defined as any building used for any purpose, i.e., either for residence or for commercial use or storage of articles, and even the Board's letter in F. No. 317/23/73-WT dated 29-7-1983 clarified that the exemption under section 5(1)(iv) was to be given irrespective of whether the house is used for the assessee's own residence or let out on rent either for residential purposes or for commercial purposes. The AAC found the property in question was a business premise being godown which is co-owned by the assessee along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e covered within the same expression 'house'. At the time of hearing reliance was placed on the dictionary meaning of the word 'house'. He has also filed a copy of the order of the Tribunal Madras Bench 'A' in the case of Baba Estates (IT Appeal No. 1142 (Mad.) of 1981 dated 31-8-1982] an AOP in which the assessee is a member. In that case the AOP obtained the land situated at 28-D, Mettu Street, Madras, on sub-lease, put up godowns thereon and let out to the Tamil Nadu Civil Supplies Corporation. The question was whether the income therefrom was assessable under the heads 'Income from house property' or 'Profits and gains of business or profession'. While the ITO held that it was an organised activity and, therefore, the income should be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e'. In reply the counsel for the assessee relied on the dictionary meaning of the word 'house'. 5. We have duly considered the rival contentions and the record before us. At the outset it is to be observed that the concept of 'property' is widest and most general under the Transfer of Property Act, 1882 but restricted to property consisting of building or buildings and land appurtenant thereto in the 1961 Act. Under the Estate Duty Act, 1953 ('the 1953 Act') 'property' includes any interest in movable or immovable property, the sale proceeds thereof and money or investment representing such sale proceeds and also includes any property converted from one species into another by any method. Under the Act, the definition of the word 'propert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be taken to the meaning in common parlance. The Concise Oxford Dictionary defines 'house' as building for human habitation or occupation. The Chambers Twentieth Century Dictionary defines 'house' as a building for dwelling ; a dwelling place, an inn ; a public house. The word 'dwelling' is defined as place where one dwells or resides. Therefore, emphasis is laid on human dwelling or residence. Wealth-tax is concerned with homo sapiens such as individuals or group of individuals called the HUF and, therefore, exemption is available for them only. Therefore, the crucial test is whether the building is one fit for human habitation or residence or dwelling. The Orissa High Court has considered the definition of the word 'house' in the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meanings, the exemption is available only in a case of house or part thereof which is habitable by human beings and the exemption, therefore, consequently, is not available in respect of godowns used for storing foodgrains inasmuch as it is only a storehouse or a godown and not a house fit for human habitation. Coming to the decision of the Tribunal in the case of Baba Estates, again it is to be emphasised that while every house is a property or a building, every property or building in terms of section 26 of the 1961 Act is not house in terms of section 5(1)(iv) of the 1957 Act. Since this is a case of exemption strict interpretation is to be applied. When once the crucial test, namely, whether it is fit for human habitation or dwelling o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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