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TMI Blog2016 (9) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... al was justified in rejecting the computation of net wealth made by the appellant in accordance with Rule 14 of Schedule III to the Wealth Tax Act? (iv) Whether the Tribunal was not correct in applying Section 7 r/w Schedule III, Rule 14 for arriving at the net taxable wealth of the appellant-Bank" 2. The Assessee was carrying on Banking business. It has filed its Wealth Tax Return for the assessment year 1999-2000, on 15.10.2001, admitting the net-wealth at Rs. 1,81,000/-. The said Return was processed under Section 16(1) of the Wealth Tax Act, on 28th March 2002. Subsequently, this assessment was reopened under Section 17 of the said Act, to verify the correctness of the assessee's claim towards proportionate liability of Rs. 1,67,29,000/- from the taxable wealth of Rs. 1,69,10,000/-. In response to the notice under Section 17, the Assessee Bank filed its Return, admitting the taxable wealth as Rs. 1,81,000/- only. The Assessing Officer passed orders, assessing the taxable wealth as Rs. 2,19,52,000/- and the tax payable thereon as Rs. 2,19,520/-. He has taken into account the depreciation statement filed for the purpose of assessment of income tax as on 31st March 1999, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ression 'asset'. Therefore, the Assessing Officer is required to find out as to whether the building, which the Assessee, has allotted for its Chairman for residential purposes, still falls within the expression 'assets' or not. The requirement in that regard being that the Chairman should not have been remunerated as salary of less than five lakh rupees. It is hardly in doubt that the Assessee being a Company and its Chairman, is a Whole Time Director and therefore, the remuneration paid to such a Whole Time Director by the Assessee ought to have been ascertained and only in that event, if the salary so paid is more than Rs. 5 lakhs, such a residential quarters can be included and be treated as an 'asset' of the Assessee for the purpose of the Wealth Tax. Unfortunately, neither the Assessing Officer nor the Appellate Authority made any attempt, whatsoever, to ascertain as to how much salary is being paid by the Assessee Bank to its Chairman and hence it has not examined as to whether the residential quarters in question can still be regarded as an asset of the Assessee or not. 7. Similarly, we need to notice Clause (b) of the Explanation relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titutions, the question came to be examined and it was answered that those who satisfied the definition of 'workmen' assigned to that expression under Section 2(s) of the Industrial Disputes Act, 1947 are liable to be treated as workmen of the Banking Industry and in any number of cases, the Supreme Court has applied the beneficial principles behind Section 25F read with Section 2(oo) of the Industrial Disputes Act, see State Bank of India vs. Shri N.Sundara Money {1976 (1) SCC 822}. 10. Therefore, carrying on the core business of Banking certainly answers industrial activity . Though in the context of the applicability of the Industrial Disputes Act, 1947, such an interpretation has been placed, but we do not see any justifiable reason to disregard such a meaning assigned to the Banking activity for purposes of understanding the expression 'industrial purposes' used in Clause (b) of the Explanation found under Section 2(ea) of the Wealth Tax Act, 1957. All the more so, in the absence of any specific meaning ascribed to the expression 'industrial purposes' by the said Act, we, therefore, consider it safe to treat the Banking activity carried on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee [on the valuation date which have been incurred in relation to the said assets;]". 15. A perusal of the definition quoted supra clearly brings out that the aggregate value of all the assets is required to be computed in accordance with the provisions of the said Act and, in case, the aggregate value of all debts owed by the Assessee have been incurred in relation to the said assets are also required to be noticed. Section 7 has dealt with as to how the value of the assets are to be determined. Sub-section (1) thereof makes it clear that the value of any asset, other than cash, shall be its value as on the valuation date as determined in the manner laid down in Schedule-III of the said Act. Schedule-III comprised of various Parts. Part-A has listed out the general rules for determining the value of the assets, while Part-B dealt with the general rules for exclusive valuation of immovable property. Part-C was, in fact, omitted by the Finance Act, 1992, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Statute should be construed as carrying no meaning at all. Every provision must be construed as intended to achieve some purpose or object by the Statute Maker. In other words, no provision of the Statute can be treated as otiose or useless. Keeping those principles in mind, when the Proviso to Rule 14 is examined, it becomes clear that the same will be applicable where it is not possible to calculate the amount of debt that is utilised for purposes of acquiring each of the assets and the formula contained therein brings out the theory of proportionate liability and the principle that would become applicable. 17. In that view of the matter, the Assessee has made a claim to extend the proportionate liability to the value of the 3 assets that was initially applied by the Assessing Officer, but however, it was taken up for re-examination under Section 17 of the Act. Unfortunately, the re-examination has not been confined to that specific area at all and it went into the merits of the matter. 18. In normal circumstances, we would have remanded the matter back for consideration afresh by the Assessing Authority. But, however, due to lapse of more than 15 years period and also in vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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