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TMI Blog2021 (2) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... ng exemption from net wealth for the Properly at Saidapet - Rs. 3,330,90,000/- and the Property at Nungambakkam - Rs. 1,40,00000/-. 2. The Ld. Commissioner of Wealth Tax (Appeals) erred in not appreciating the (act that the property at Saidapet is a commercial property purchased in the name of a partnership firm M/s Venkateshwara Combines wherein the appellant was a 50% partner. Hence the property cannot be directly treated as wealth in the hands of the Partner. 3. The Ld. Commissioner of Wealth Tax (Appeals) erred in not considering that the property at Saidapet is a commercial establishment and is a productive asset and is not a residential house property and therefore is squarely covered under the exemption u/s 2(ea}(1)(5)and does not form part of net wealth 4. The ld. Commissioner of Wealth Tax (Appeals) erred in no' considering that the property at Haddows Road was used by the appellant for her business purpose, the appellant was the proprietor at MIS Lava corporation doing consultancy and Textile business for which the assessee used the property at Haddows Road as her office premises. 5. The ld. Commissioner of Wealth Tax (Appeal) erred in not deciding on the ground r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. In response to notice, the assessee filed letter dated 26.04.2012 and requested to provide copy of reasons recorded for reopening of assessment and also requested to treat the returns filed u/s.14 of the Act may be returns filed in response to notice issued u/s.17 of the Act. The case has been selected for scrutiny and during the course of assessment proceedings, the Assessing Officer, after considering relevant submissions of the assessee, assessed taxable wealth of Rs. 7,36,10,887/- by making additions towards 50% of share in Saidapet property and 20% of share in Haddows Road property amounting to Rs. 3,30,90,000/- and Rs. 1,40,00,000/- respectively. The Assessing Officer has also made addition in respect of Rutland Gate property and three motor vehicles along with cash balance of Rs. 14,73,028/- to net wealth. The relevant findings of the Assessing Officer are as under:- " In the return of wealth filed by the assessee for AY.2008-09 on 23.07.2010 admitting a net wealth of Rs. 2,34,38,192/-, the net wealth included property at Saidapet and Nungambakkam, Chennai. The assessee owns 50% ownership in saidapet properly and 20% ownership in Haddows Road Property. The v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so challenged the addition made towards Saidapet property on the ground that said property has been used for own business of proprietary concern of M/s. Laya Corporation, which is doing consultancy and textile business and hence, as per section 2(ea)(1)(v) of the Act, once assessee occupies property for the purpose of business carried on by her, then same is exempt from definition of assets. Similarly, the assessee has challenged disallowance of liability relating to Rutland Gate property and argued that assessee has purchased property at Rutland Gate through loans availed from different parties through account payee cheque and the same has been accepted during the income tax assessment proceedings and hence, liability for purchase of asset should be deducted to arrive at net wealth for the purpose of tax. 8. The learned CWT(A), after considering the relevant submissions of the assessee and also taken note of copy of partnership deed of M/s .Venkateshwara Combines, accepted the claim of the assessee that property is in the name of partnership firm and the same has been used for the purpose of business of the firm. However, he further noted that since the assessee has admitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness of the assessee and eligible for exemption u/s. 2(ea)(1)(v) of the Act and does not form part of net wealth for wealth tax purpose. The learned AR further submitted that assets standing in the name of partnership firm cannot be considered directly in the hands of the partner. If at all any addition is required to be made, the same may be by ascertaining value of interest in the partnership firm. As regards property of Saidapet , value adopted by the Assessing Officer is on higher side. Hence the appeals filed by the assessee may be set aside to the file of the Assessing Officer to redo the assessments by ascertaining correct value of property in the name of partnership firm and the property at Saidapet. 10. The learned D.R., on the other hand, strongly supporting the order of the learned CWT(A) submitted that the learned CWT(A) has brought out clear facts to the effect that property at Saidapet and property at Haddows Road were included by the assessee in the wealth tax returns filed for the assessment year 2008-09 and hence, the argument that property is in the name of partnership firm is not substantiated with evidence and therefore, cannot be accepted. As regards property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty at Saidapet, although the assessee claims that the said property was used for her own business, but conceded the fact that property was never used for the purpose of business during the impugned assessment years. The only argument advanced by the learned AR for the assessee is value adopted by the Assessing Officer and according to him, value adopted by the Assessing Officer is on higher side. Schedule III (2) of Wealth Tax Act, 1957 provides for valuation of asset and how such value to be determined. The Assessing Officer shall determine value of property in accordance with Schedule III. In this case, the Assessing Officer has adopted value declared by the assesse, without following the procedure provided under Schedule III. We, therefore, considering the facts and circumstances of this case, are of the opinion that the appeals need to be set aside to the file of the Assessing Officer to redo the assessments in respect of above two properties and determine the value of interest in partnership firm in accordance with Rule 16 and value of Saidapet property in accordance with Part B of Schedule III to Wealth Tax Act, 1957. 12. In the result, appeals filed by the assessee for all ..... 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