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TMI Blog2011 (8) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... om properties shown in the income tax return which is liable to be taxed under the provision of Wealth Tax?" Briefly stated the issue arises in following factual background. The respondent company is a State Owned Corporation viz. Gujarat State Petroleum Corporation Limited. The assessee company owned certain immovable properties. Such properties included a constructed building called "Udyog Bhavan" and another guest house called "Hazira Guest House". The Assessing Officer noted that for the assessment years 1999-2000 and 2000-2001, the assessee had declared properties incomes of Rs. 14,47,700/- and Rs. 3,90,653/- respectively, the Assessing Officer therefore formed an opinion that such properties were not used by the assessee for i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arning rental income. Revenue approached the Tribunal by filing Appeal which however confirmed the view of the CIT (A) making following observations: "Having heard both the sides, we have carefully gone through the orders of the authorities below. It is pertinent to note that the assessee-company is not engaged in the business of letting out of properties. In the case of Anand Estate Pvt. Ltd. (supra), Anand Estate has leased out its godowns. Therefore, it was held that godowns were not used for business because those were occupied or used by the tenants for their businesses. In the instant case, the assessee-company has let out only a very small portion (i.e. less than 10%) of its office premises to the Directorate of Petro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the meaning of section 2(ea)(i)(5) and, as such, value thereof is not includible in the net wealth chargeable to tax under the Wealth Tax Act. Therefore, the decision of the Hon'ble Bombay High Court in the case of Anand Estate Pvt. Ltd. (supra) relied by the Id. D.R. is not applicable in this case. Apart from this, in the assessment year 2001-02, the Learned Commissioner of Wealth Tax (Appeals) assessed the rental income under the head "income from business". This fact is not controverted by the Id.D.R. The guest house at Hazira, Surat is primarily maintained by the assessee for its business purposes and recovery charges for the use of such guest house by officials of joint venture partner and professionals, who rendered service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the direction of the Government. The main purpose of this arrangement was to have close liaison with the Directorate of Petroleum. It has also come on record that the guest house at Hazira was located at the distance of 30 K.M. from Surat, it was in the vicinity of the exploration site of the assessee. In the said guest house as per the need of the business, the officer of the joint venture and subsidiary companies and other officers were permitted to reside and in the process usage charges were collected. Principally the guest house constructed for the assessee's own business. Though the Revenue has heavily relied on the decision in the case of Anand Estate Pvt. Ltd. vs. Deputy Commissioner of Income Tax reported in 316 ITR 94, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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