Law: Wealth Tax Act, 1957

Section: 27(3)

Wealth tax-- ----Reference---Investment in incomplete and unfinished factory building--­Tribunal justified in holding that value could not be included in total wealth of assessee--No question of law arose---Indian Wealth Tax Act, 1.957--­Indian Finance Act, 1983, S. 40(3)(vi). Held, dismissing the application for reference that in order to attract the applicability of section 40(3)(vi) of the Finance Act, 1983, the building or part thereof must be capable of being used by the assessee. The facts as found and the question itself suggested that the investment was in an incomplete and unfinished factory building, the construction whereof was still in progress. It was not the case of the Revenue that the building or part thereof as it stood in the relevant assessment year was capable of being subjected to any use by the assessee. Obviously, the building or part thereof was not covered by clause (vi) above-said. The answer to the question was obvious. The Tribunal was correct in holding that the investment was not liable to be included in the wealth of the assessee-company. No question of law arose from its order. JUDGMENT This is a petition under 27(3) of the Wealth Tax Act, 1957, arising out of the assessment year 1987-88 whereby the Revenue seeks a mandamus to the Tribunal for drawing up a statement of case and referring the following question for the opinion of the High Court: "Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was correct in law in holding that the investment of Rs.14,91,874 in an incomplete and unfinished .factory building is not liable to be included in the wealth of the assessee-company?" The question calls for interpretation of section 40 of the Finance Act, 1983. The assessee was constructing…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492