2001 (7) TMI 306

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....lage limit of Akurdi leased for a period of 95 years from Maharashtra Industrial Development Corporation (hereinafter called MIDC) on the terms and conditions provided in the lease deed dated 29-9-1978. This deed was registered under the provisions of Bombay Stamp Act before the Sub-Registrar of Bombay. The total area of land is 9,605 sq.mt. on which assessee had constructed a factory building. The excess land admeasuring 2,175 sq.mt. is the subject matter of dispute. The Assessing Officer was of the view that value of the land is chargeable to wealth-tax under section 40 of Finance Act, 1983. The explanation of the assessee was that it possessed only the leasehold rights over the above land and was not absolute the owner of such land. Acco....

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.... was not the absolute owner of the land, but could enjoy the user of the land subject to the terms of lease deed. He also relied on various decisions of Supreme Court and High Courts Late Nawab Sir Mir Osman Ali Khan v. CWT [1986] 162 ITR 888 (SC), CWT v. Bishwanath Chatterjee [ 1 976] 103 ITR 536 /539 (SC), CWT v. Mohd Isnwil [1979] 117 ITR 273 (Cal.). On the other hand, the Id. D.R. has strongly supported the order of CWT(A) by contending that for the purpose of Wealth-tax Act, the legislature has not used the words 'owned by'. The words 'belong to' used by the legislature would include the interest in property and therefore, leasehold rights over land can be said to be an asset failing within the definition of the word 'land'. 5. Riva....

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....1 it included the property of every description but did not include the properties specified in clauses (i) to (v). Clause (v) excludes any interest in property where interest is available to the assessee for a period not exceeding six years from the date the interest vests in the assessee. This itself shows that the word 'asset" included not only full ownership, but also the interest in the asset. If the words 'asset' or 'property' were not capable of including the 'interest in asset or property" then there was no need to exclude such interest from the definition of 'asset' by the legislature. Further the legislature has excluded only that interest which vests in the assessee for a period not exceeding six years. But where the interest ves....