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TMI Blog2013 (8) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... it was undisputed that the two aircrafts were used by the Assessee for its business - Since this was the undisputed factual position the same would be exempt from wealth tax. The use of an aircraft for commercial purposes does not necessarily entail hiring to third parties, ferrying of passengers or leasing of the aircrafts for consideration - The intention of the legislature while creating the exception by using the expression “used by the Assessee for commercial purposes” was not to restrict the meaning of the words “commercial purposes” to running the same on hire or as stock in trade - There was no infirmity in the order of the ITAT - Decided against revenue. - WTA 1/2013 - - - Dated:- 11-7-2013 - Sanjiv Khanna And Sanjeev Sachde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used for commercial purposes and hence would be treated as an asset for wealth tax purposes. As per the Assessing Officer aircraft used by an airline would be treated as used for commercial purposes. We record and note that the Assessing Officer did not dispute or record that the aircrafts were not used for Assessee s business. 5. Aggrieved by the order dated 31.3.2006 of the Assessing Officer, the Assessee filed an appeal before the Commissioner Income Tax (Appeal). Relying upon the judgement of the Income Tax Appellate Tribunal, Mumbai Bench in the case of Garware Wall ropes Ltd versus additional Commissioner of income tax (2004) 89 ITD 221 (Mumbai) the Commissioner Income Tax (Appeal) held that the aircrafts owned by the Assessee were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in connection with its business as distinct from using it for personal purposes or non-business purposes, the use of the aircraft would be a use for commercial purposes and would be thus exempt from the purview of wealth tax. 10. When the directors or executives of a company use an aircraft owned by the company to travel to its various offices or to various places for meeting or business purposes connected with the operation and activities of the company, the use of the aircraft would amount to usage for commercial purposes. In the today's need and requirement for the efficient running of businesses, the directors and executives of a company instead of taking commercial flights prefer to travel by their own aircrafts which in turn save ..... X X X X Extracts X X X X X X X X Extracts X X X X
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