9911796707
TMI Blog2002 (8) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... sists of 175 cents of land with built up area of 1,187 sq. metres. The assessees claimed the benefit of the proviso to section 7(4) of the Wealth-tax Act. The assessing authority while granting exemption under that provision, limited it to an extent of 88 cents out of the 175 cents, after expressing the view that that extent was the reasonable extent which could be regarded as the land appurtenant to the house. He thereafter estimated the value of the remaining 87 cents and calculated the same in the assessable wealth of the assessee. He relied upon the Town Planning Rules which stipulated, according to him, that the open area shall be "not less than 1/3rd of the area of the site open to the sky". An appeal to the appellate authority havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... option, specify in this behalf in the return of net wealth." This sub-section does not set out a definition of the term "house" nor does it lay down any ceiling regarding the extent of open space which can be regarded as part of the house. The term "house" is not defined in the definition section 2 of the Wealth-tax Act. The tests that are required to be satisfied to attract the proviso to section 7(4) are (i) that the property must belong to the assessee, and (ii) that it should be used exclusively for "residential purpose". In the event of the assessee having more than one residential house, option is given to the assessee to specify the house in respect of which he wishes to avail of the benefit under that proviso. It is the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enquiry is outside the scope of the Wealth-tax Act. Learned counsel for the assessee submitted that the present assessee is a member of the family of the late Sri Shanmugam Chettiar, who was at one time the Finance Minister for the Union of India and that the house had been purchased by him together with the enclosed grounds and that the area of the house as also the extent of the grounds attached to it are the same even now. Although on account of the pressure of population and the high cost of land in urban areas, the extent of living space available to the average urban dweller has dwindled and having the benefit of open space, much less garden space, is almost a luxury, nevertheless, the fact that in earlier times houses were large a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
