9911796707
TMI Blog1969 (6) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment years are 1956-57, 1957-58, 1958-59 and 1959-60. The corresponding previous years were the financial years ending on the 31st of March, 1956, 1957, 1958 and 1959, respectively. The respondent is a non-resident shipping company. Its registered office is in Japan. It has been assessed to income-tax for the assessment years aforesaid under the Indian income-tax Act, 1922, with respect to net Indian earnings. The assessee did not maintain separate accounts for its Indian business ; its net profits on the basis of its world profit and loss account was computed under the Indian Income-tax Act, 1922, and, thereafter under rule 33 of the Rules, the Indian net profit was worked out in the proportion as between the gross Indian earnings and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of anchorage or regular keeping place is located shall be the city, town or village mentioned in Part I except those cases coming under the provisions of article 389, para. 1, item (1) and when the principal port of anchorage is unknown with respect to vessels, the city, town or village in which the port of anchorage is located and in which the port of registry is located shall be regarded as the city, town or village in which the principal port of anchorage is located. " " Article 349 (b) : The taxable basis for the municipal property tax to be imposed on depreciable concerned assets as of the date of imposition already registered in the depreciable assets tax ledgers. The taxable basis for the municipal property tax to be imposed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since the payment of wealth-tax was not allowable as a business expenditure, the same principle ought to be applied to the said property tax. The Tribunal took the view that the property tax in Japan was payable, subject to the specified exceptions, on all assets " which can be used for business purpose. " In these premises, the Tribunal held that the property tax was attracted whenever there was actual user of depreciable assests in a business and necessarily the carrying on of business with such assests is a pre-condition to the imposition of the tax. The Tribunal upheld the Appellate Assistant Commissioner's order that the Japanese property tax was an allowable deduction under section 10(2)(xv) of the Indian Income-tax Act, 1922. To u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Organisation of the owner or are merely owned by him. The assets of the taxpayer, incorporated or not, become chargeable to tax because they are owned by him and not because they are used by him in the business." We have quoted above the relevant provisions of the Japanese statute. Now, section 3 of our Wealth-tax Act of 1957 provides : " Subject to the other provisions contained in this Act, there shall be charged for every financial year commencing on and from the first day of April, 1957, a tax (hereinafter referred to as ' wealth-tax ') in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company at the rate or rates specified in the Schedule. " The tax, therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suggests that an assets which is capable of being used for business purpose is subjected to this property tax in Japan. In other words, it is the ownership of the assets that is material and not its actual user in business. The charging provision is in article 342(1). This sub-article clearly provides that the municipal property tax is imposed " on property ". The location of this property has been specified both in this sub-article and sub-article(2). To attract the charging section, therefore, there are two requirements. (1) " Property " (within the meaning of the statute) of which the assessee is the owner and (2) location of that property in places specified in sub articles (1) and (2) of article 342. The definition of this property, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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