2016 (8) TMI 131

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....rs 2001-02 & 2003-04 respectively, the revenue has preferred the present Tax Appeals for consideration of the following substantial question of law: Whether the learned Tribunal below committed serious error of law in holding that the property in question is not an asset within the meaning of Section 2-E(a) of the Wealth Tax Act by totally misinterpreting the phrase "Commercial Establishment" or "Complexes" referred to in subclause (5) thereto? 2. During the assessment proceedings the Assessing Officer noticed that the assessee was in receipt of rent during previous year from factory building/sheds. It was noticed that no wealth tax return was filed. Therefore the Assessing Officer valued the same as per Schedule III of the Wealth Tax....

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....assessee. 8. To our mind sub-clause(5) of clause(i) of section 2(ea) nowhere requires that a commercial establishment or a complex cannot be established in a house property. It only provides that any property in the nature of commercial establishment or complexes shall be excluded from the term assets as defined in clause(i) of section 2(ea) Further that it nowhere provides that only if such commercial complex is occupied by the owner then alone the exclusion shall take effect. On both counts thus contention of the Revenue cannot be accepted. It is significant to note that exception sub-clause(3) of clause(i) of section 2(ea) pertains to any house which the assessee may occupy for the purposes of any business or profession carried on by ....