1993 (10) TMI 118

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..... he has sustained the valuation of the property styled as 'DHANUR BUILDING' for the assessment year 1986-87 at cost thereof subject to direction to make addition of the actual repair expenses incurred thereon in that year towards repairs and renewal. As regards the assessment year 1987-88, the CWT(A) accepted the plea of the assessee that 700 sq. ft. out of 3000 sq. ft. of the building was occupied by the assessee for its office use. Therefore the cost of the building and the cost of renovation and renewals incurred in that year should be excluded proportionately i.e., 7/30th of the portion of the building should be excluded from valuation as exempted and 23/30th portion of the building which is tenanted should be valued on rent capitalisat .....

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..... he assessee had occupied 700 sq. ft. out of 3000 sq. ft. out of vacant space. Therefore the CWT(A) directed that the tenanted portion of the building should be valued at 12 times the net annual rent and this should be deducted from the total cost of the property including the sum invested thereon by way of repairs and renewals. On the balance 7/30 value should be excluded for being actually used for office purposes. Accordingly he has granted partial relief as detailed in the appellate order. 5. At the time of hearing the learned counsel for the assessee referred to the additional grounds moved by the assessee and urged that the value of the property is not to be included for W.T. purposes for these years under consideration inasmuch as t .....

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..... receiving consideration for certain immovable property from the purchaser but he had not executed any registered sale deed in favour of the vendees. In these circumstances the Supreme Court held that the value of the properties was to be included in the net wealth of the assessee for the purpose of assessments to wealth-tax as they were assets belonging to him within the meaning of section 2(m) of the Wealth-tax Act, 1957. For all legal purposes, the properties had to be treated as belonging to the assessee. It was also stated that the liability to wealth-tax arises because of the belonging of the asset and not otherwise. Mere possession, or joint possession, unaccompanied by the right to be in possession or ownership of property, would, th .....

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