TaxTMI 
TaxTMI 
2016 (8) TMI 232
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....tion of law: (A) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the properties at Worli, Mumbai owned by the assessee was outside the purview of the `asset' because this property was commercial property, ignoring the fact that sub-clauses (4) and (5) of clause (i) of Section 2(ea) were brought on the statute only with effect from 01.04.1999 through the Finance (No.2) Act, 1999? 2. The assessee had filed return of wealth declaring net wealth of Rs. 19,21,000/-. The assessment was made u/s 16(3) r.w.s. 17 of Wealth Tax Act determining total wealth at Rs. 3,44,52,400/-. The Assessing Officer held that the property at Worli, Mumbai was given on rent and therefore did not....
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....n of "assets" has been amended and the words "commercial purposes" have been specifically inserted therein. The following portion of the Departmental Circular No.762, dated 18th February, 1998 elaborates the scope and effect of the substitution of section 2(ea)(i) by the Finance (No.2) Act, 1996, as under: "Amendment of the term "assets".- 57.1 The term "assets", on which tax is to be levied is defined in clause (ea) of section 2. This definition includes any guest house and any residential house (including a farm house situated within 25 kms of the local limits of any municipality) except assets mentioned in sub-clauses (1) and (2) of this clause. If residential houses have been taken as assets, there seems to be no reason why commercial ....
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....w of the section 2(ea) of the Act. Moreover, it may be noticed that even before the Commissioner (Appeals) it was not the case of the assessee that it fell within the ambit of any of the aforesaid three excepted categories. According to the assessee the subject property was exempted under clause 2(ea)(i)(5) of the Act. In this regard it may be germane to note that by the Finance (No.2) Act, 1998 with effect from 1.4.1999, section 2(ea) came to be amended whereby two additional categories which are excluded from the definition of "assets" thereunder, came to be introduced vide sub-clauses (4) and (5) to clause (i) of section 2(ea) of the Act, so as to provide exemptions from wealth-tax in respect of any residential property that has been let....