2003 (1) TMI 655

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....s exigible to wealth-tax. 3. We have heard the rival submissions in the light of material placed before us and precedents relied upon. Assessee is owning a helicopter. This was used for the purposes of the assessee's business. Assessee did claim depreciation on the said helicopter. It was allowed. Further it was stated that there was no disallowance in the income-tax assessments on account of the personal user of the helicopter. Our attention was invited on the language of section 2(ea). This is reproduced here as under: "'Assets', in relation to the assessment year commencing on the first day of April, 1993, or any subsequent assessment year, means- (i)........... (ii)........... (iii)........... (iv)Yachts, boats and air....

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....o Oxford Dictionary, means viewed as a matter of profit or loss. The word 'purpose' means object, which is in view or for which it is made. The term "commercial purpose", therefore, means an undertaking, the object of which is to make a profit out of such undertaking. Random House Dictionary of English language also states as one of the meanings of the term 'commerce' as business. 7. Hon'ble Finance Minister in his budget speech at para 67 (194 ITR - statute - 1, 21) has said that there is no distinction at present between productive and non-productive assets. The Chelliah Committee has sug-gested that, in order to encourage the taxpayers to invest in productive assets, such as shares, securities, bonds, bank deposits, etc. and also to p....

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.... in the business of running them on hire". Wherever Legislature wanted that a particular asset should be used for hire for claiming exemption, they have specifically mentioned this fact (e.g., section 32 of the Income-tax Act). In other cases, the term "commercial purposes" has been used to indicate that the asset should be used for the purpose of business and there is no condition that it should be let out on hire. The term "commercial purpose" has to be distinguished from "personal purposes". In other words, if the aircraft, i.e., helicopter is used for personal purposes, it will be liable to wealth-tax. If it is used for "commercial purposes", i.e. for business purposes, it will be exempt. 10. Interpretation postulates the search for ....