1997 (2) TMI 160

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.... plots measuring 997.9 sq. mtrs. each at the rate of Rs. 3,20,000 each. In the wealth-tax returns filed by the assessee for these three years, however, the value of these plots of land was not declared. It was contended by the Assessing Officer that the plots under consideration were " appurtenant lands " of the factory belonging to the assessee. The Assessing Officer discussed that two of the plots under consideration were situated in the factory building area. At the same time again, he held that the plots of land were there all along and that they were never being used as part of the factory and since the assessee had proposed to sell these plots of land and the Government had also granted permission to do so, the plots of land could not....

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.... assessment year 1984-85, the assets to be included within the assessable wealth of an assessee of the relevant type would include " building or land appurtenant thereto other than building or part thereof used by the assessee as factory ...... for the purpose of its business ...... and the land appurtenant to such building or part ". In the instant case, therefore, the matter to be considered is whether the plots of land can be held to be appurtenant to the factory building of the assessee. The word " appurtenant " has not been defined in the Income-tax Act or the Wealth-tax Act. The dictionary meaning of the word as per Oxford Illustrated Dictionary is " belonging, appertaining ". Stroud's Judicial Dictionary also ascribes the same meanin....

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....e factory building area will have to be considered as land appurtenant to the factory building. In the instant case, therefore, on the basis of the noting made by the Assessing Officer himself in the assessment orders that two of the plots of land were situated within the factory building area itself, we are of the opinion that such plots of land would have to be considered as " land appurtenant " to the factory building. We, therefore, partially reverse the orders of the lower authorities and direct that the values of two of these plots should not be included within the assessable wealth of the assessee. So far as the third plot is concerned, no specific mention has been made about its location, although it appears that the said plot is no....