9911796707
TMI Blog2005 (11) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1999-2000 are reproduced below : "1.The CIT(A) erred in upholding the assessment of the property at Colaba Kartar Bhavan Premises Co-operative Society Ltd. [the Kartar Bhavan property] as being liable to tax under the Act. 2.The CIT(A) erred in holding that the Assessing Officer had validly initiated the proceedings under section 17 of the Act. 3.The CIT(A) erred in holding that the Kartar Bhavan Property belonged to the Appellant and was liable to wealth-tax in its hands. 4.The CIT(A) failed to appreciate that the appellant was only a shareholder in the society and rights with respect to the Land and Building vested in the Society and therefore, same could not be assessed to tax in its hands. 5.The CIT(A) erred in holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibed in Schedule III and recompute the taxable wealth of the assessee. Aggrieved by the same, the assessee is in appeal before us. 4. Ground No. 1 being general in nature needs no adjudication and, hence, the same is rejected. It is submitted by the ld. counsel for the assessee that ground No. 2 is not pressed by the assessee hence, this is also rejected. 5. As regards ground Nos. 3 to 7 are concerned, the ld. counsel for the assessee submitted that the assessee had acquired from Mantec Services (P.) Ltd. 10 shares in the Kartar Bhavan Premises Co-operative Society Ltd., Colaba bearing distinctive Nos. 1 to 10 valued at Rs. 50 each and also rights with respect of the office premises mentioned above for a sum of Rs. 1,76,54,540 and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to own any property belonging to the society, therefore, the assessee had obtained 10 shares in the said society and thereafter had purchased the property for a consi-deration of Rs. 1.60 lakhs and the transfer fee and the stamp duty have already been paid by the assessee by executing a deed of transfer/sale deed. Thus, it cannot be said that the society is the owner of the said property. By virtue of the registered sale deed the assessee has become the rightful owner of the said property. 9. As regards question ( ii ), the assessee has entered into business centre agreement with M/s. SNP Shipping Services (P.) Ltd. permitting the use of the said property for a monthly consideration of Rs. 75,000 for a period of 3 years which was liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cannot be said that the tenant has acquired any ownership rights within the meaning of section 269UA( f ) of I.T. Act or section 4(8)( b ) of the W.T. Act. 10. As regards question ( iii ), section 2( ea ) of the W.T. Act defines assets and sub-clause ( 3 ) of clause ( i ) excludes any property which the assessee may occupy for the purposes of any business or profession carried on by the assessee and sub-clause ( 5 ) of clause ( i ) excludes any property in the nature of commercial establishment or complexes. It is not in dispute that the property is in the possession of M/s. SNP Shipping Services (P.) Ltd. and the assessee s contention that he is in possession of the said property and is carrying on the business of providing services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income as per the provisions of W.T. Act and this being a legal issue and since both the appeals were disposed of by a common order, we think that the appeal for assessment year 1998-99 is also to be remanded back. Therefore, we deem it proper and necessary to remand this matter back to the Assessing Officer for reconsideration of this issue. We remand this issue back to the Assessing Officer with the direction to consider only whether the property in question could be excluded from the assets liable to wealth-tax by virtue of section 2( ea )( i )( 5 ) of the W.T. Act and to assess the wealth accordingly. Needless to say that the assessee shall be given an opportunity of being heard. In view of the above ground Nos. 3, 4, 5 6 are rejec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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