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TMI Blog2009 (2) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 2 of 2008 - - - Dated:- 26-2-2009 - RAMACHANDRAN NAIR C. N., SURENDRA MOHAN K. JJ JUDGMENT The judgment of the court was delivered by 1. C. N. Ramachandran Nair J .-The question raised in the appeal filed by the Revenue is whether the Tribunal was justified in holding that the respondent-assessee is entitled to exemption under section 2(ea)(i)(3) and 2(ea)(ii) of the Wealth-tax Act, 1957 for the cashew factory buildings leased out to a firm of which the respondent was the partner. 2. We have gone through the order of the Tribunal and have heard standing counsel appearing for the assessee and advocate Shri Balakrishnan appearing for the respondent. 3. Clause (ea) of section 2 provides for exemption is as follows: "'asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was a partner. The Tribunal has relied on the order of the CIT (Appeals) in a similar case in favour of the assessee and held that the Department has accepted the decision. Besides these two, the Tribunal has relied on the decision of the Patna Bench of the Tribunal in another case. Standing counsel for the appellant contended that the decision relied on by the Tribunal is not applicable because that was a case where the building involved was not leased out to the firm for rent. According to him in this case building is leased out on market rate of rent by the assessee to the firm and so much so the building cannot be said to have been used by the assessee for her own business purpose entitling for exemption. So far as the case dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the section is use of the building for business or personal purposes of the assessee as its owner and occupier there is no scope for granting exemption on rented building. The building ceased to be eligible for exemption at the hands of the assessee when it is leased out on rent. We therefore hold that the assessee is not entitled to exemption for the leased factory buildings under section 2(ea)(i)(3) of the Wealth-tax Act. Consequently appeal is allowed by reversing the order of the Tribunal and by restoring the assessment. 5. Counsel for the respondent-assessee invited our attention to the order of the Tribunal declining to consider the exemption claimed by the assessee under section 5(1)(vi) of the Act which entitles the assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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