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TMI Blog2010 (2) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... within the four corners of assets, as defined in section 2(ea) of the Act and liable to wealth-tax, which is totally lacking in the present case. - Not liable to wealth tax - W. T. A. Nos 17, 18, 19, 20 2008 - - - Dated:- 19-2-2010 - ASHUTOSH MOHUNTA, MEHINDER SINGH SULLAR, JJ JUDGMENT Mehinder Singh Sullar J.- As common questions of law and facts are involved in the present appeals filed by the Revenue against the respondent-assessee-Smt. Neena Jain c/o M/s. Sweety Fabrics (P) Ltd. (for brevity "the assessee"), pertaining to the same property of different assessment years, therefore, we propose to dispose of the aforementioned four appeals, vide this single judgment, in order to avoid the repetition of facts. However, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncomplete house of the assessee very much falls within the purview of assets in section 2(ea) of the Act, and as such, it is liable to wealth-tax. Consequently, the value of the plot and investment of her share in construction of residential house was added and tax was, accordingly, assessed, vide order dated June 7, 2006 (annexure A1). 5. Aggrieved by the order (annexure A1), the assessee filed the appeal, which was accepted by the Commissioner of Wealth-tax (Appeals)-I, Ludhiana, vide order dated January 9, 2007 (annexure A2). 6. The Revenue filed the appeal against the order (annexure A2), which was dismissed by the Income-tax Appellate Tribunal,Chandigarh, vide order datedSeptember 18, 2007(annexure A4). 7. The Revenue still d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elhi High Court in the case of CWT v. Prem Nath Motors Pvt. Ltd. [1999] 238 ITR 414, are at all applicable to the facts of the present controversy. 11. In Cadmach Machinery Co. (P.) Ltd. [2007] 295 ITR 307 ; [2007] 212 CTR 285, the factory and research building were under the process of construction during the year under consideration. The assessee claimed exemption from wealth-tax on the building under construction as per clause (v) of sub-section (3) of section 40 of the Finance Act, 1983. On the peculiar facts and circumstances of that case, while interpreting the provisions of section 40(3) of the Finance Act, 1983, it was ruled that "under such circumstances, such building could not have fallen in the exceptional clause provided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cadmach Machinery Co. (P.) Ltd.'s case [2007] 295 ITR 307, but the same would not come to the rescue of the Revenue in the present case. Moreover, the reproduced observations in Prem Nath Motors Pvt. Ltd.'s case [1999] 238 ITR 414 support the case of the assessee in this relevant connection. 14. Now, in the instant case, the core question, that arises for determination, is whether the incomplete building of the assessee falls within the ambit of assets as defined in section 2(ea) of the Act or not, which postulates that "assets" in relation to the assessment year commencing on the 1st day of April, 1993, or any subsequent assessment year, means any building or land appurtenant thereto (hereinafter referred to as "house"), whether used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having a roof, dwelling place, walls, doors, windows, electric and sanitary fittings etc. If one or more such components are lacking, then it cannot possibly be said that the building is a complete structure for the purpose of section 2(ea) of the Act. A residential house is an unit, which is complete for habitation having the minimum bare required facilities. The legislative intent underlying the amended provisions of section 2(ea) is clear and implicit that the Legislature sought to bring within the ambit of this section all those buildings, which are completed and ready for use of residential, commercial or guest house, as the case may be, as an incomplete structure cannot be put to any such use. 16. It is not a matter of dispute th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ightaway liable to wealth-tax. There are many exceptions contained in section 2(ea) (i) of the Act in this respect, such as, house meant exclusively for residential or commercial purposes, which forms part of the stock-in-trade or any house which the assessee may occupy for the purposes of any business or profession carried on by him or any property in the nature of commercial establishments or complexes etc. Sequelly, there is an exclusion clause contained in Explanation 1(b) of the Act, in regard to urban land as well. In that eventuality, the burden of proof was on the Revenue and the adjudicating authority was required to record a categoric finding that the building of the assessee actually exigible to wealth-tax. Meaning thereby, it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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