2004 (9) TMI 17

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....of which was occupied by the assessee are to be treated as the assets of the assessee's business and hence, not hit by the provisions of section 40 of the Finance Act, 1983?" The assessee is a domestic company carrying on business of dealing in real estate, constructing, selling and letting out buildings on hire. The basement portion of the building to an extent of 1,500 sq.ft. was let out to the Indian Bank and the balance portion was used by the assessee for its business purpose. Though the assessee had returned the value of the building and land, it contended before the Assessing Officer that in terms of section 40 of the Finance Act, 1983, as a portion of the basement was used by the assessee as office premises, the value of the buildi....

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.... 29 for coming to the conclusion that no part of the assets of the assessee company in the form of land and building can be treated as exigible to wealth-tax is uncalled for, and even assuming that the Tribunal's decision is applicable to the facts of the present case, the Tribunal failed to note that the said decision of the Tribunal has been reversed in CWT v. Varadharaja Theatres Pvt. Ltd. [2001] 250 ITR 523 by this court. So far as the building is concerned, it is the contention of learned counsel for the assessee that a part of the building has been used as an office for its official purpose. There are no details as to what is the nature of the lease or what is the extent which has been leased out. Whether the act of granting lease of....

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....y of monetary payment) chargeable under the head 'Salaries' under the Income-tax Act does not exceed eighteen thousand rupees." Thus all lands other than agricultural lands form part of the taxable wealth and inclusion of the value of lands is perfectly justified. The intention of the Legislature is to be ascertained with reference to the language employed in the legislation and the context. There is nothing in the text or context here which would warrant the exclusion of the value of assets, which is not given within the exclusion clause as stated above. It is a case in which the Assessing Officer has given a clear finding that a substantial portion of the basement, namely an extent of 1500 sq.ft. has been leased out to the Indian Bank o....