JUDGEMENT
S. Grover, Judicial Member -
(1.)THE short and interesting question in this Revenue appeal is whether the Commissioner of Wealth-tax (Appeals), New Delhi was justified in vacating the addition of Rs. 1,93,127 made in the assessment as cost of land and building under construction to the assessable wealth of the respondent, which is a private limited company, and for which the valuation date was 31-12-1984.
(2.)The WTO made the addition by observing that since the building had not yet been completed and not been used for business purposes, the assessee's claim of exemption in relation to the said assets could not be accepted.
The CWT(A) allowed the assessee's appeal and deleted the addition of Rs. 1,93,127 by accepting the contention that since the industrial plot was purchased by the company in public auction from Delhi Development Authority in November 1983 and the building after construction was used for industrial purposes Clause (vi) of Section 40(3) of the Finance Act, 1983 came to the assessee's rescue and the value of the plot and the factory building under construction was, therefore, not taxable.
(3.)BEFORE us Shri N.D. Lama, Departmental Representative appeared and supporting the assessment order, submitted that since there was no evidence brought on record that the building after construction was used for business purposes by the company, the addition came to be rightly made and the CWT(A) was not correct in giving relief.
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