9911796707
TMI Blog2013 (2) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee would be applicable only in case of employees of the assessee and not the Director, Manager or the Secretary - even the Manager or Secretary do not hold any share, nevertheless the assessee would be entitled to exemption - Against the Revenue. Wealth tax - inclusion of leased out property into Net Wealth - Assessee, apart from doing printing business, is also doing the business of leasing out the properties – Leased out two properties – Held that:- claim of exemption must be with reference to the nature of the premises – Assessee are doing business in leasing as well and in the course of such business, they have leased out the premises – leasing out the premises owned by a company is part of the company's business and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 123 and 124, Brick Kiln Road, Madras-7. The first property was leased out to Tamilnadu Electricity Board and derived the benefits from the Board by way of installation of transformers. The property in Door No.124 was leased out to one company by name Lotus Inks. Similarly, the assessee allotted the premises at Door No.20, Hunters Road to the Managing Director for being used as residence. The assessee filed return of wealth on 12.3.1992, admitting a net wealth of Rs.5,58,900/-. In order to regularise the return, a notice under Section 17 of the Wealth Tax Act, was issued to the assessee. In response to the notice, the assessee had stated that the return filed earlier may be treated as one filed in response to the said notice. As far as the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found that inasmuch as the nature of the premises had not been discussed by the Assessing Officer, it remitted the matter to the Assessing Officer for fresh consideration in the light of the ratio laid down by the Income-tax Appellate Tribunal in W.T.A.No.1271/Mds/1992 dated 8.4.1996 for the assessment years 1986-87 and 1987-88. As far as the property at Door No.124 is concerned, the case of the assessee was accepted on the ground that the leasing out the premises is part of the company's business and the premises itself had been commercially exploited, the assessee could claim exemption. This was taken on further appeal to the Tribunal by the Revenue and the appeals were dismissed. 4. Insofar as the premises allotted to the Managing Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e may be. The Section is very clear, inasmuch as it treats any building and the land appurtenant to such building used as residential accommodation by any Director, Manager, Secretary or any other employee of the assessee, such employee holding not less than one per cent of the equity share of the assessee would be entitled to exemption. The second portion of the holding not not less than one per cent of the equity share of the assessee would be applicable only in case of employees of the assessee and not the Director, Manager or the Secretary. In case even the Manager or Secretary do not hold any share, nevertheless the assessee would be entitled to exemption of the above provision. For that reason, the claim of the assessee for exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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