1987 (6) TMI 86 - AT - Income Tax

Tribunal Upheld Library & Land Exemptions

The Tribunal upheld the exemption of the library value from taxable wealth under section 5(1)(xii) and confirmed the Barasat land's agricultural exemption ... Bonus, Weighted Deduction Issues:1. Exclusion of the value of library from taxable wealth.2. Exemption of Barasat land as agricultural under section 5(1A).Exclusion of Library Value from Taxable Wealth:The Wealth-tax Officer appealed against the exclusion of the library value from taxable wealth, arguing that the books held by the assessee, an advocate, were not intended for sale but were used for professional purposes. The Departmental Representative contended that the books in the library should not be exempted under section 5(1)(xii) of the Wealth-tax Act as they were not of the same nature as works of art, archaeological, scientific, or art collections. However, the Appellate Asstt. Commissioner exempted the library books based on previous Tribunal decisions. The assessee's counsel argued that the issue was settled by previous Tribunal decisions and invoked the principle of stare decisis. The Tribunal held that the library books were exempt from wealth-tax as they were essential tools for the profession and not intended for sale, satisfying the conditions of section 5(1)(xii).Exemption of Barasat Land as Agricultural:The second issue pertained to the exemption of Barasat land under section 5(1A) as agricultural. The Tribunal found that this issue was previously decided in favor of the assessee and followed by the Appellate Asstt. Commissioner. The Tribunal held that the Barasat land was agricultural in nature and entitled to exemption under section 5(1A) of the Wealth-tax Act. The Tribunal noted that no new arguments were presented to deviate from the earlier decisions, leading to the dismissal of the appeals.In conclusion, the Tribunal upheld the exemption of the library value from taxable wealth based on the specific provisions of section 5(1)(xii) and previous Tribunal decisions. Additionally, the Barasat land was deemed agricultural and eligible for exemption under section 5(1A) following consistent Tribunal rulings. The appeals filed by the Wealth-tax Officer were ultimately dismissed.