TaxTMI 
TaxTMI 
1989 (4) TMI 131
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....e Commissioner of Wealth-tax (Appeals), New Delhi was justified in vacating the addition of Rs. 1,93,127 made in the assessment as cost of land and building under construction to the assessable wealth of the respondent, which is a private limited company, and for which the valuation date was 31-12-1984. 2. The WTO made the addition by observing that since the building had not yet been completed and not been used for business purposes, the assessee's claim of exemption in relation to the said assets could not be accepted. 3. The CWT(A) allowed the assessee's appeal and deleted the addition of Rs. 1,93,127 by accepting the contention that since the industrial plot was purchased by the company in public auction from Delhi Development Aut....
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..... 13 of the Finance Act, 1960 relating to exemption of companies from levy of wealth-tax under the Wealth-tax Act, 1957 (hereinafter referred as 'the Act') wealth-tax shall be charged for every assessment year commencing on and from the first day of April, 1984 in respect of the net wealth on the corresponding valuation date, not being a company in which the public are substantially interested. Sub-section (2) lays down that for the purpose of sub-section (1), the net wealth of a company shall be the amount by which the aggregate value of all the assets referred to in sub-section (3) on the valuation date is in excess of the aggregate value of all debts. There is a proviso attached to sub-section (2) laying down constraints that where any d....
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....y for the welfare of its employees and the land appurtenant to such building or part : Provided that each such employee is an employee whose income (exclusive of the value of all benefits or amenities not provided for by way of monetary payment) chargeable under the head 'Salaries' under the Income-tax Act does not exceed eighteen thousand rupees ; " 7. The provision relevant to the present appeal is clause (vi) and, therefore, we must closely look at the opening wording that the " building or land appurtenant thereto other than building or part thereof used by the assessee as factory, godown, warehouse, hotel or office for the purposes of its business or as residential accommodation for its employees etc., etc. " The use of the word ....
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.... separately. Now it shall be highly illogical to hold that the cost of factory building under construction should be subjected to tax ; whereas the value of the building completed would be outside the ambit of taxation, particularly in view of the situation that the factory building under construction, as a fact, was used by the assessee as a factory after its completion. 9. Independent of the above, the uncompleted building meant and being constructed for the use of the assessee cannot be termed as any thing different than the building used by the assessee as a factory, etc. 10. Besides, the Revenue's grievance projected in its appeal is that the learned CWT(A) erred in holding that the industrial plot in possession of the company wa....