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TMI Blog1981 (9) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... t both the theatre and the land and building in question are used for the purpose of the business of the two firms. The Schedule to the Wealth-tax Act, 1957, giving the rate of wealth-tax enacts that an additional tax shall be imposed on urban assets including a share of any partner in the urban assets held by a firm. Treating these theatre buildings as urban asset the WTO imposed additional tax. On appeal, the AAC found that these urban assets were business premises and, therefore, cannot be subjected to additional tax. 3. In this appeal it was pointed out on behalf of the revenue that these buildings were actually held by the firms and under the general law the assessee-partner cannot specify any share in those buildings as his share wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efinition excludes business premises from its scope. Therefore, primarily additional tax cannot be imposed on business premises even if it happens to be in an urban area. If an individual has held a business premises it would not be an urban asset and it will not suffer additional tax. But the revenue seeks to deny this exemption merely because the individual holds it along with others as a partnership. Normally the interest of a partner not being an interest in a particular asset held by a firm would not be liable to additional tax, but for the deeming provision in rule 3 under Paragraph B of the Schedule. Rule 3 itself states that where the net wealth of the assessee includes an interest in a firm and the assets of the firm included any u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule 1(i) of Paragraph B, to the share of the assessee-partner in a business premises treating it as an urban asset, we find that both the conditions are satisfied. Therefore, primarily the business premises in question are outside the scope of urban asset and, secondly, even if assumed to be within the scope of an urban asset held by a firm the interest of the partner which is deemed to be an urban asset will also fall within the scope of business premises and will again be exempt from the additional wealth-tax. Therefore, looking at it from any point of view, we are satisfied that the AAC was right in cancelling the additional wealth-tax imposed on the assessee. We have, therefore, no hesitation in confirming the order of the AAC. 5. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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