TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Court denies wealth-tax exemption for cinema building, emphasizing legislative intent.</h1> <h3>Commissioner of Income Tax Versus Varadaraja Theatres Pvt. Limited</h3> The court ruled in favor of the Revenue, holding that the cinema building owned by the assessee was not entitled to exemption from wealth-tax under ... Wealth Tax, Exemption, Law Applicable Issues Involved: The issue involved in this case is whether the cinema building owned by the assessee is entitled to exemption from wealth-tax u/s 40(3)(vi) of the Finance Act, 1983 for the years 1984-85, 1985-86, and 1986-87.Judgment Details:The Tribunal held that the cinema building owned by the assessee is entitled to exemption from wealth-tax u/s 40(3)(vi) of the Finance Act, 1983, despite cinema house not being mentioned in that provision during the relevant period. The Tribunal viewed the subsequent amendment as curative and declaratory, but the court disagreed. The court emphasized that when Parliament enacts a law, it must be understood based on the language used, the scheme of the Act, and the object of the statute. The court stated that not every removal of hardship implies retrospective effect without a legislative declaration to that effect.The court highlighted that an amendment can be tested to determine if it is declaratory or substantive by examining whether the provision without the amendment could include what was later added. In this case, it was found that the provision as it stood previously did not include cinema houses as business assets.The court referred to a decision by the Karnataka High Court but disagreed with its view that the mentioning of cinema houses in the provision was merely curative and declaratory. The court noted that the memorandum explaining the provisions of the amending Act did not support the view that the amendment was intended to be declaratory.In conclusion, the court ruled in favor of the Revenue and against the assessee, holding that for the assessment years from 1984-85 to 1986-87, the cinema house owned by the assessee was not exempt from wealth-tax u/s 40(3)(vi) of the Finance Act, 1983.
TaxTMI 
TaxTMI 
