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TMI Blog2007 (10) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... D. Mistry with Raj Darak for the respondent. JUDGMENT The Judgment of the court was delivered by F. I. Rebello, J. - The Revenue has preferred this appeal on the following question : "In the facts and circumstances of the case and in law, whether the rent and deposits received by the intermediary tenant from the ultimate user of the premises of the rent and deposit received by the assessee from the intermediary tenant, who never occupied the premises is to be taken for the computation of net wealth of the assessee for valuation under Rule 3 of Part B of Schedule III of the Wealth Tax Act, 1957?" 2. For the assessment year 1998-99 the Assessing Officer noted that the Assessee had given premises on licence to the Licensee fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, following the aforesaid decision of the tribunal the ITAT also decided all the appeals in favour of the assessee and against the revenue. 3. The issue of annual letting value in so far as proceeding under the Income Tax Act, on similar facts, where the assessee had given premises on licence by accepting consideration and the license giving the premises on sub licence to Reliance for higher consideration, has been considered by us in the case of the Commissioner of Income Tax Versus M/s. Akshay Textiles Trading Agencies Pvt. Ltd . [2008] 304 ITR 401(Bom) in Income Tax Appeal No. 607 of 2005 decided on 17 th October, 2007. in that case, we had proceeded on the footing that the order of the Commissioner (Appeals) setting asid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owned by the assessee on the valuation date which have been incurred in relation to the said assets." 6. "Assets" has been defined under Section 2(ea) of the Act and reads as under : "assets" in relation to the assessment year commencing on the 1 st day of April, 1993, or any subsequent assessment year, means - (i) any building or land appurtenant thereto (hereinafter referred to as "house"), whether used for residential or commercial purposes, or for the purpose of maintaining a guest house or otherwise including a farm house situated within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich though agreed has not been paid but is yet receivable. Rule 5(iii) sets out that where the owner has accepted any amount as deposit (not being advance payment towards rent for a period of three months or less), then how that is to be taken into consideration. 10. On a consideration of the provisions of the Act and the Rules, it would be clear that the rent/licence fee paid by M/s. Reliance Industries Ltd. or by the ultimate sub lessee to the lessee or Licensor is immaterial. What is to be considered is the amount received or receivable by the owner. Therefore, both, for the purpose of annual value as well as deposit, the relevant test is the amount received by the owner. The colourable device between the licence and the sub license ..... X X X X Extracts X X X X X X X X Extracts X X X X
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