Wealth-tax exclusion for business buildings applies only to specified uses; let-out commercial property remained taxable.

Section 40 of the Finance Act, 1983 revives wealth-tax for closely held companies and taxes only the assets specified in sub-section (3), subject to the listed exclusions. Clause (vi) exempts only a building or part thereof used by the assessee as a factory, godown, warehouse, hotel, office, or specified welfare accommodation, and the provision was held to be plain and unambiguous without resort to external aids. A building does not escape wealth-tax merely because it is a commercial asset or let out in the course of the assessee's leasing business; it must still fit within the specific exclusion. The tenanted portion here did not fall within any excluded category and was therefore liable to wealth-tax.

---

---

Issues: Whether the tenanted portion of the assessee's building was used in its business so as to fall outside the charge to wealth-tax under section 40(3)(vi) of the Finance Act, 1983.

Analysis: Section 40 of the Finance Act, 1983 revives wealth-tax for closely held companies and taxes only the assets specifically enumerated in sub-section (3), subject to the stated exclusions. Clause (vi) exempts only a building or part thereof used by the assessee as a factory, godown, warehouse, hotel, office, or certain specified welfare accommodation. The provision is plain and unambiguous, so recourse to the Finance Minister's speech or other external aids is unnecessary. A building does not escape wealth-tax merely because it is a commercial asset or because it is let out in the course of the assessee's leasing business; the asset must still answer the specific description in the exclusionary clause. The tenanted portion of the building in question did not fall within any of the specified excluded categories.

Conclusion: The tenanted portion was liable to wealth-tax and the reference was answered against the assessee and in favour of the Revenue.

---