9911796707
TMI Blog1995 (1) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, it can be said that the house was exclusively used by the assessee for residential purposes throughout the period of 12 months immediately preceding the valuation date relevant to the wealth-tax assessment year 1976-77. The words in section 7(4) of the Act, as the provision existed before its substitution by the Direct Tax Laws (Amendment) Act, 1989, are retained more or less in sub-section (2) of section 7 and the expression, the value of the house belonging to the assessee and exclusively used by him for residential purposes throughout the period of 12 months immediately preceding the valuation date may, at the option of the assessee, be taken to be the price which, in the opinion of the Assessing Officer, it would fetch, if sold in the open market on the valuation date next following the date on which he became the owner of the house, or on the valuation date relevant to the assessment year commencing on the 1st day of April, 1971, whichever valuation date is later, provided that where more than one house belonging to the assessee is exclusively used by him for residential purposes, the provisions of this sub-section shall apply only in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aside. He, however, added that a full opportunity should be given to him to establish during the reassessment proceedings that the house was exclusively used for residen tial purposes of the assessee and that the conditions necessary for apply ing the provisions of section 7(4) of the Wealth-tax Act were satisfied in the assessee's case. " The Tribunal has, however, stated as follows: "The Commissioner of Wealth-tax is certainly not right in the view he held. Even if the assessee is away from India for such long periods, it is still a house belonging to him and exclusively used by him for residential purposes throughout the period of 12 months immediately preceding the valuation date. It has not been let out on rent. It is also not used for commercial purposes. The father and mother are not staying there in the house as of right but only out of filial love and affection. Only if the house is let out for rent or used for commercial purposes or if others are also staying there as of legal right it could be said that the house is not exclusively used for residential purposes. It may also be noted that the assessee was residing in this house from October 25, 1975, to November 24, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... living in a place. It is, therefore, capable of different meanings, including domicile in the strictest and most technical sense and a temporary residence. Whichever meaning is given to it, one thing is obvious and it is that it does not include a casual stay in, or a flying visit to a particular place. In short, the meaning of the word would, in the ultimate analysis, depend upon the context and the purpose of a particular statute. In this case the context and the purpose of the present statute certainly do not compel the importation of the concept of domicile in its technical sense. The purpose of the statute would be better served if the word 'resides' was understood to include temporary residence. The juxtaposition of the words 'is' and 'last resided' in the sub-section also throws light on the meaning of the word 'resides'. The word 'is', as we shall explain later, confers jurisdiction on a court on the basis of a casual visit and the expression 'last resided', about which also we have something to say, indicates that the Legislature could not have intended to use the word 'resides' in the technical sense of domicile. The word 'resides' cannot be given a meaning different from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thing more. Legal possession does not of itself constitute an occupation. The owner of a vacant house is in possession, and may maintain trespass against anyone who invades it, but as long as he leaves it vacant he is not rateable for it as an occupier. If, however, he furnishes it, and keeps it ready for habitation whenever he pleases to go to it, he is an occupier, though he may not reside in it one day in a year. On the other hand, a person who, without having any title, takes actual possession of a house or piece of land, whether by leave of the owner or against his will, is the occupier of it. It is of course, a question of fact in each case. If a man is merely there for a night or two, as in the case of a tramp sleeping in an outhouse--he is not in occupation. But if he is living on the land for a continuous period of time, the Magistrate may properly draw the conclusion that he is in occupation of it." Dealing with a case of a British subject, who had leased out a house in London on facts, inter alia, that he had surrendered the lease and sold his furniture and had no fixed abode but he stayed at hotels either in Britain or abroad, between December, 1919, and 1925, he sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Andhra Pradesh High Court judgment referred to a judgment of the Delhi High Court in CWT v. Mrs. Avtar Mohan Singh [1972] 83 ITR 52, wherein it was held that the physical residence of the family of the assessee without any legal right to share the use of the house by the assessee does not come in the way of exclusiveness of the use of the house by the assessee. Learned counsel for the Revenue has, however, pointed out that the legislative intent in "the exclusive use for residential purposes by the assessee throughout the period of 12 months immediately preceding the valuation date,' does not appear to permit a wider meaning of residence being imported to understand the expression, "residential purposes" and the expression "exclusively used by him" should be taken to exclude altogether occupation of the house by any other person and the absence of the assessee in any period of 12 months immediately preceding the valuation date. He has canvassed before us that any liberal meaning to the expression so purposely used by the Legislature, will harm the interest of the Revenue and thus the interest of the public at large. We are, however, not impressed enough to depart from the consen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal accepted such a statement about the occupation of the building by the power attorney, is not clear. The courts have often pointed out that the task of the Revenue enforcement agencies is not easy. It has to, on the one hand, ensure that all the revenue is collected and no person escapes tax and if he has to pay tax, he must pay. It has, on the other hand, to see that a law-abiding assessee is not subjected to any unnecessary harassment and if he has made no deliberate default, he is not subjected to harsh treatment. A cautious and. careful enquiry before assessment and in the case of any doubt as to the correctness of the return and information otherwise showing that the assessee has not made a correct disclosure, a scrutiny of the materials in accordance with law alone can achieve the necessary balance between the interest of the assessee and the interest of the Revenue. The appellate authorities can, no doubt, entertain such facts which are made available to them but are expected in such a case, to see why the facts brought before them were not brought to the notice of the assessing authority and why such facts should be accepted as true. The appellate authorities can hardl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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