9911796707
TMI Blog2000 (2) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... transit accommodation for its employees who are on official visit of Calcutta. 2. The residential buildings 'Gagan Deep' and 'Rockdale' are used for housing the employees whose salary is in excess of Rs.10,000 and the building 'Woodlands' is used as transit accommodation by its employees and officers. Sub-clause (vi) of Sub-section (4) of section 40 of the Act as was introduced stated, "the building or land appurtenant thereto, other than building or part thereof used by the assessee as factory, godown, warehouse, hotel or office for the purposes of its business or as a residential accommodation for its employees whose income chargeable under the head 'Salaries' is ten thousand rupees or less". This sub-clause was amended by the Finance Act, 1988 and it read, "the building or land appurtenant thereto, other than building or part thereof used by the assessee as factory, godown, warehouse, hotel or office for the purposes of its business or as a residential accommodation for its employees or as a hospital, creche, school, canteen, library, recreational centre, shelter, rest room or lunch room mainly for the welfare of its employees and the land appurtenant to such building or part: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecessary to examine the provisions of section 40 of the Finance Act, 1983 by which wealth-tax on companies got revived. We accordingly reproduce the said section as it was enacted, followed by the amendment that was made by the Finance Act, 1988. "40(1) Notwithstanding anything contained in section 13 of the Finance Act, 1960 [13 of 1960], relating to exemption of companies from levy of wealth-tax under the Wealth-tax Act, 1957 [27 of 1957] [hereinafter referred to as the Wealth-tax Act], wealth-tax shall be charged under the Wealth-tax Act for every assessment year commencing on and from 1st day of April, 1984, in respect of the net wealth on the corresponding valuation date of every company, not being a company in which public are substantially interested, at the rate of two per cent of such net wealth. Explanation - For the purposes this sub-section, "company in which public are substantially interested" shall have the same meaning assigned to it in clause (18) of section 2 of the Income-tax Act. (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 assets referred to in sub-section (3), wherever locate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide that for the purposes of sub-clause (1), the net wealth of a company will be the amount by which the aggregate value of the assets specified in sub-clause (3) exceeds the aggregate value of debts secured on or incurred in relation to such assets. However, any such debt secured on any asset belonging to the assessee which is incurred for the benefit of any other person, or which enures to any other person or which is not represented by any asset belonging to the assessee, will not be taken into account in computing the net wealth of the assessee. Sub-clause (3) seeks to specify the assets for the purposes of sub-clause (2). Sub-clause (4) seeks to provide that the value of any asset will be estimated, subject to the provisions of sub-section (3) of section 7 of the Wealth-tax Act, relating to determination of the value by the Valuation Officer, to be the price which, in the opinion of the Wealth-tax Officer the asset would fetch if sold in the open marked on the valuation date. Sub-clause (5) ........ Sub-clause (6) ........ Sub-clause (7) ........ FINANCE BILL, 1988 54. Under the existing provisions of section 40 of the Finance Act, 1983, wealth-tax is levied in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-sections (1) to (3) of section 40 of the Finance Act are substantive provisions relating to rate of tax, the net wealth and the assets and the debts that would be taken on the valuation date for levy of wealth-tax. 8. The building that is used as residence of the employees whose salary is Rs.10,000 or less, is one of the assets that is to be excluded in the valuation of the assets on the valuation date. This is part of the substantive provision which was amended only to exclude those assets that are held as stock-in-trade and further amendment was that the salary of employees was increased from ten thousand rupees to eighteen thousand rupees. 9. Lawmaker in the proposal to introduce wealth-tax on closely held companies had exempted certain institutions which factor is an indicator that they had consciously provided for the inclusion of certain assets for the levy of wealth tax and certain other assets and classes of companies have been excluded or exempted. It is therefore, clear that it is within the power of the lawmaker to include or exclude and to apply the inclusion or exclusion prospectively or retrospectively. 10. All substantive provisions that are related to inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
