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TMI Blog2002 (9) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... ery in the block of assets for depreciation under section 32 of the Income tax Act 1961, as part of the plant and machinery, should be construed as motor cars simpliciter as specified for the purpose of section 40(3)(vii) of the Finance Act, 1983? - 3. Whether, the Tribunal was right in holding that the factory building at Avadi cannot be treated as business asset used for the purpose of business of the appellant-company as per interpretation of section 40(3)(vi), in the facts and circumstances of the case?" - We, therefore, do not find any error in the order of the Tribunal as also of the statutory authorities who have rightly held that the factory building was not to be excluded while considering the assets required to be valued for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e?" The assessment years are 1986-87 to 1988-89. The assessee which is a closely held private company, even at the time of its formation on November 30, 1985, was not carrying on any business in the factory. What it had acquired from the firm, whose assets it took over, was the right to receive the rent from a factory building which the firm, K.N. Chari and Co. (Industries) had leased to Courtica Manufacturing (India) Pvt. Ltd. After the formation of the assessee company, it entered into a further agreement with the same lessee and renewed the lease for a further period of three years. All the machineries installed in the plant belonged to the lessee who was carrying on business. The assessee had also permitted the lessee to construct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs." Thus all lands other than agricultural lands as also motor cars form part of the taxable wealth and inclusion of the value of lands and motor cars was perfectly justified. The intention of the Legislature is to be ascertained with reference to the language employed in the legislation and the context. There is nothing in the text or context here which would warrant the exclusion of value of assets acquired by a closely held private company with its own funds. Nor is there anything in the provision either expressly stated or implicit therein to warrant exclusion of motor cars on the ground that they form part of the block of assets for depreciation under section 32 of the Income-tax Act. So far as the factory building is concerned it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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