9911796707
TMI Blog2015 (5) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... '). The assessment years with which we are concerned in this appeal are 1987-1988, 1988-1989, 1989-1990 and 1990-1991. Invoking the provisions of Section 40 of the Finance Act, 1983 by which the levy of wealth tax in the case of closely-held companies was revived, the assessing officer took the view that on the building where the appellant-Hospital was carrying on its business activity of running a Hospital would be subjected to the wealth tax inasmuch as under sub-Section (3) of Section 40, the nomenclature of those assets are mentioned which are to be included for the purposes of assessing the wealth tax and building and land appurtenant thereto is specifically stipulated therein. The appellant challenged the order by filing appeal be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l is run would fall in that excluded category. In order to answer this question, we reproduce clause (vi) of sub-section (3) of section 40 hereunder: - "(vi) building or land appurtenant thereto, other than building or part thereof used by the assessee as factory, godown warehouse, cinema house, hotel or office for the purposes of its business or as a hospital, creche, school, canteen, library, recreational centre, shelter, rest-room or lunch room mainly used for the welfare of its employees or used as residential accommodation, except as provided in clauses (vi-a) and (vi-b), and the land appurtenant to such building or part; (vi-a) any building used as residential accommodation in the nature of a guest house and land appurtenant thereto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect is dealt with by the High Court in detail in para 17 and 18 of the impugned judgment that reads as under: "17. We have already noted clause (vi) excludes building or part thereof used by the assessee as factory, godown, warehouse, hotel, cinema house or office for the purposes of its business and also buildings which are used for residential accommodation for its employees or as a hospital, creche, school, canteen, library, recreational centre, shelter, rest room or lunch room mainly for the welfare of its employees and the land appurtenant to such building. A company can do a variety of business. It need not have a factory or a godown or a warehouse. It may carry on business of a hotel, business of a cinema theatre, business of a hosp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uding a cinema theatre in the exclusion clause. This is so in the case of a hotel also. A hotel is a place where the business of serving food to customers is transacted. Hence if a closely held company is engaged in the business of running a hotel if the view taken by the Tribunal is adopted there was no need for specifically including a hotel in the excluded category in clause (vi). 18. This internal aid in understanding the meaning of the expressions "office for the purpose of its business" indicate that all the buildings which are used as a productive asset for the purpose of the business of a closely held company are not intended to be excluded under clause (vi). It is only buildings used for 'industrial purposes' which are exc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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