Wealth-tax on business vehicles upheld where motor-car exemptions did not apply under the governing provision.

Section 40(3)(vii) of the Finance Act, 1983 brought motor cars into net wealth, leaving only limited exemptions for motor cars held as stock-in-trade or motor cars registered as trucks and used in a motor-car-hire business. The assessee's vehicles, including a trekker treated as a motor car, were business assets but did not fall within either exemption. On those admitted facts, the Tribunal found no referable question of law and was justified in refusing to state a case. The levy of wealth-tax on the vehicles was therefore upheld.

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Issues: Whether the Tribunal was justified in refusing to state a case and refer the questions concerning levy of wealth-tax on vehicles owned by the assessee as business assets, including a trekker treated as a motor car, under section 40(3)(vii) of the Finance Act, 1983.

Analysis: Section 40(3)(vii) of the Finance Act, 1983 includes motor cars in the net wealth, while exempting only motor cars held as stock-in-trade in a business or motor cars registered as trucks and used in the business of running motor cars on hire. The vehicles in question were owned by the assessee for business use and were neither held as stock-in-trade nor used in a motor-car-hire business. On those admitted facts, the Tribunal held that no referable question of law arose and that the statutory provision plainly governed the levy.

Conclusion: The Tribunal was justified in declining to refer the questions of law, and the levy of wealth-tax on the vehicles was upheld.

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