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Issues: Whether jeeps fall within the expression "motor cars" in clause (vii) of sub-section (3) of section 40 of the Finance Act, 1983, so that their value is includible in the net wealth of a closely held company.
Analysis: The provision under section 40 of the Finance Act, 1983 levies wealth-tax on specified assets of companies, and clause (vii) of sub-section (3) uses the expression "motor cars". The expression was construed by reference to its ordinary meaning, the definition in the Motor Vehicles Act, and the treatment of jeeps under the depreciation schedule in the Income-tax Act, 1961. The earlier interpretation under section 37(3B)(ii) of the Income-tax Act, 1961 was treated as context-specific and not controlling for the present provision. The surrounding statutory context indicated an intention to cover motor vehicles used for carrying passengers within the generic expression "motor cars".
Conclusion: Jeeps are included within the expression "motor cars" in clause (vii) of sub-section (3) of section 40 of the Finance Act, 1983, and their value is includible in the assessee-company's net wealth. The assessee's contention fails.
Ratio Decidendi: A generic statutory expression is to be given its ordinary and contextual meaning, and where that meaning encompasses a vehicle commonly understood as a motor car, the asset is taxable under the provision.
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