Law:

Section:

Wealth Tax Act, 1963 (XV of 1963)- ----Second Sched., Part I, C1.12(2)--"Shop"--Connotation--Assessee who is running a school in his own house is not entitled to the exemption under C1.12(2) of Part I of Second Schedule to the Wealth Tax Act, 1963. [Pp. 162, 163 & 164] A, B & C PTCL 2000 CL 38 and (1996) 73 Tax 174 ref. Order Anwar Zaheer Jamali, J.--This appeal under Section 27(1) of the Wealth Tax Act, 1963, at the instance of Department, proposes following question of law for the opinion of this Court:-- "Whether on the facts and in the circumstances of this case the learned Income-tax Appellate Tribunal was justified in arriving at the conclusion that the assessee who is running a school in his own house is entitled to the exemption under clause 12(2) of Part-I of Second Schedule to the Wealth Tax Act, 1963?" 2. In a nutshell relevant facts of the case are that respondent owns a Bungalow Bearing No. 259-L, Block-6, PECHS, admeasuring 600 Sq. Yds. with ground and first floor accommodation, having a covered area of 2250 Sq. fts. and 1800 Sq. fts. respectively. The first floor accommodation is in occupation of the respondent for his personal use for residential purposes while the ground floor accommodation is being used for commercial activity i.e. running of a School under the name and style of Greenwich Public School. 3. The Deputy Commissioner of Wealth Tax/Assessing Officer rejected the claim of the assessee for exemption under the clause 12(2) of Part-I of Second Schedule to the Wealth Tax Act, 1963, as regards the ground floor accommodation, being commercially used for running a school. However, in the appeal preferred by the Assessee/ respondent before the Commissioner of Income Tax (Appeals) Karachi, his claim of exemption under the above provision of Wealth Tax Act, 1963 was accepted and accordingly the order of the D.C.I.T./Wealth Tax Officer was set aside. In the Departmental Appeal before the Income Tax Appellate Tribunal Karachi, the Tribunal concurred with the view of CIT (Appeal), and consequently dismissed the appeal of the department. 4. Mr. Jawaid Farooqui learned counsel for the appellant after narration of relevant facts, as…

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