Commercial property excluded from net wealth where used for offices, banks and garages under the amended Wealth-tax definition of asset.

Property used for offices, banks and garages was treated as a commercial establishment or complex and, on the stated facts, was held to be used for commercial purposes. In light of the amendment to the Wealth-tax Act, 1957 effective from 1 April 1993, such commercial property fell outside the definition of "asset" for wealth-tax purposes. The Tribunal's view that the property was outside the taxable asset base was found to involve no substantial error of law, and the property was therefore not includible in net wealth.

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Issues: Whether a property used for offices, banks and garages, and found to be a commercial establishment or complex, was includible in the net wealth of the assessee under the Wealth-tax Act, 1957.

Analysis: The property was found on facts to have been used for commercial purposes. In view of the amendment to the Wealth-tax Act, 1957, with effect from 1 April 1993, such a commercial establishment was outside the definition of asset for wealth-tax purposes. No substantial error of law was shown in the Tribunal's view that the property fell outside the taxable asset base.

Conclusion: The property was not includible as an asset for wealth-tax purposes, and the assessee succeeded on the issue.

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