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TMI Blog1996 (2) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... 0-9-1993. As per section 40 of the Finance Act, 1983, certain specified assets of closely held companies are liable to wealth-tax. The Assessing Officer completed the assessments under section 16(5) of the W.T. Act wherein the value of the motor cars was brought to tax. 2. Aggrieved, the assessee filed appeals before the First Appellate Authority wherein it was contended that the motor cars owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee is carrying on business of leasing and in the course of its regular business activities the motor cars are leased on hire and hence the proviso to section 40(3) of the Finance Act, 1983 is applicable. He therefore submitted that the motor cars which were owned by the assessee and used as stock-in-trade in the business of leasing carried on by the assessee, is not liable to wealth-tax. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat this section shall not apply in the case of motor cars referred to in clause (vii) if they are held as stock-in-trade in such business or registered as tax is and used as such in a business of running motor cars on hire carried on by the assessee. Admittedly the assessee's business activity includes leasing of motor cars on hire. To our mind, there cannot be any difference between an assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be brought to tax and therefore exceptions were provided thereunder. By the same spirit and intendment, the Legislature has inserted proviso to section 40(3) of the Finance Act, 1983 with effect from 1-4-1989 whereby motor cars used in a business of running motor cars on hire were excluded from wealth-tax. We are therefore of the opinion that the motor cars used by the assessee for the purpose o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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