2007 (10) TMI 250

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....nd deposit received by the assessee from the intermediary tenant, who never occupied the premises is to be taken for the computation of net wealth of the assessee for valuation under Rule 3 of Part B of Schedule III of the Wealth Tax Act, 1957?" 2. For the assessment year 1998-99 the Assessing Officer noted that the Assessee had given premises on licence to the Licensee for a consideration. The licencee thereafter had sub licensed the premises to Reliance for higher consideration. The learned Assessing Officer held that the transaction between the licensee and licensor was a colourable device and therefore the amount receivable by the Assessee Company was the amount which M/s. Reliance Industries Ltd. sub licensee has paid to the License....

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....sub licence to Reliance for higher consideration, has been considered by us in the case of the Commissioner of Income Tax Versus M/s. Akshay Textiles Trading & Agencies Pvt. Ltd . [2008] 304 ITR 401(Bom)  in Income Tax Appeal No. 607 of 2005 decided on 17^th October, 2007. in that case, we had proceeded on the footing that the order of the Commissioner (Appeals) setting aside the order of the Assessing Officer as being colourable device had not been challenged before the ITAT and as such could not have been raised before the tribunal and consequently before this court. Apart from that on merits we had also considered the provisions of Section 23(1) of the Income Tax Act and had arrived at the conclusion that what has to be considered i....

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....ds as under : "assets" in relation to the assessment year commencing on the 1^st day of April, 1993, or any subsequent assessment year, means - (i) any building or land appurtenant thereto (hereinafter referred to as "house"), whether used for residential or commercial purposes, or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty five kilometres from local limits of any municipality (whether known as Municipality, Municipal Corporation or by any other name) or a Cantonment Board." 7. The next relevant provision is Section 7(i) which reads as under : "Subject to the provisions of sub section 2), the value of any asset, other than cash, for the purposes of this Act shall be it....