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TMI Blog2019 (1) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... ty in question must have multiple units in the nature of commercial establishments. The revenue's stress on the word “establishments” used in plural, is not quite acceptable. The term “commercial establishments” is used to exclude all commercial establishments and is not meant to restrict the application of exclusion clause only to commercial establishments which have multiple units. - WEALTH TAX APPEAL NO. 516 OF 2016 WITH WEALTH TAX APPEAL NO. 520 OF 2016 - - - Dated:- 7-1-2019 - AKIL KURESHI B.P. COLABAWALLA, JJ. Mr. Suresh Kumar for the Appellant Mr. Mihir Naniwadekar a/w Mr. Ruturaj Gurjar for the Respondent P.C.: 1. These appeals arise out of the common background. We may refer the facts from Wealth Tax Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e holds three separate units located at different places which were rented out to the Oriental Bank of Commerce and thus, put to commercial use. The assessee contended that the establishments being in the nature of commercial establishments, would be excluded from the definition of term assets by virtue of exception (5) to clause (i) to Section 2(ea) of the Act. The revenue opposed the contention. The assessing officer held that the single unit cannot be excluded since in the exception clause, the word used is commercial establishments as in plural. The objection of the revenue also appeared to be on the ground that the rental income was offered by the assessee as income from house property in income tax return. 5. The issue eventual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss on the word establishments used in plural, is not quite acceptable. The term commercial establishments is used to exclude all commercial establishments and is not meant to restrict the application of exclusion clause only to commercial establishments which have multiple units. 8. Further the Division Bench of Gujrat High Court in the case of Vasumatiben C. Virani (supra) in slightly different context while referring to the said exception clause (5) had made following observations:- 8. To our mind sub-clause (5) of clause (i) of section 2(ea) nowhere requires that a commercial establishment or a complex cannot be established in a house property. It only provides that any property in the nature of commercial establishment o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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