2016 (8) TMI 232

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....eration of the following substantial question 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, Mu....

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....owever, with effect from 01.04.1997, the definition 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....

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.... aforesaid three categories which are excluded from the purview 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 wealt....