2002 (8) TMI 82

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... This reference under section 27(1) of the Wealth-tax Act, 1957, is made by the Income-tax Appellate Tribunal, Indore Bench, Indore, at the instance of the Revenue, for resolution of the following question said to be a question of law: "Whether, on the facts and in the circumstances of the case, the Income tax Appellate Tribunal was correct in holding that the cinema theatre was entitled to e....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....121 held, as below: "Under section 40 of the Finance Act, 1983, provision was made to levy wealth-tax on certain assets owned by companies. The object was to prevent avoidance of wealth-tax liability by transfer of unproductive assets to closely held companies. As per clause (vi) of sub-section (3) of section 40 of the Finance Act, 1983, which was enacted initially, any building or part thereof....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....emption from wealth-tax. The Tribunal was also right in holding that a cinema theatre was a plant under the provisions of the Wealth-tax Act also." We tend to agree with the view taken by the Karnataka High Court. The word "factory" was not defined in the Finance Act of 1983. Naturally, the meaning assigned to this word in the Factories Act could be taken into account even for the purpose of we....