Law:

Section:

[2007] 165 Taxman 612 (Punjab & Haryana)/[2009] 311 ITR 412 (Punjab & Haryana)/[2007] 212 CTR 497 (Punjab & Haryana) [2007] 165 TAXMAN 612 (PUNJ. & HAR.) HIGH COURT OF PUNJAB AND HARYANA Commissioner of Income-tax, Haryana, Rohtak* v. Hemla Embroidery Mills (P.) Ltd. M.M. KUMAR AND AJAY KUMAR MITTAL, JJ. IT REFERENCE NO. 159 OF 1999 AUGUST 2, 2007 Section 4 of the Wealth-tax Act, 1957 - Deemed wealth - Assessment year 1987-88 - Whether amendment in section 4 by insertion of sub-section (8) is declaratory and clarificatory in nature - Held, yes - Tribunal following of Supreme Court in CIT v. Podar Cement Pvt. Ltd. [1997] 92 Taxman 541 held that section 4(8) introduced in Wealth Tax Act by Finance (No. 2) Act, 1996, with effect from 1-4-1997 should be treated as declaratory and clarificatory in nature so far as it related to point in issue and, therefore, amended provision would have retrospective operation - Tribunal, accordingly, held that since assessee had received full consideration for transfer of said factory building and vendee was using and enjoying said property without any hindrance, factory building could not be treated as belonging to assessee as on relevant valuation date and, therefore, value thereof was not liable to wealth-tax in hands of assessee - Whether Tribunal was justified - Held, yes FACTS The assessee-company filed its return of income showing net wealth contending that factory building and machinery were transferred to the subsidiary company and, therefore, same were not liable to wealth-tax in its hands. The Assessing Officer held that since the building was not used as factory by the assessee but by some other person, same was includible in the net wealth of the assessee. Accordingly, he estimated the value of the building at Rs. 10 lakhs and added the same to the net wealth of the assessee. On appeal, the Commissioner (Appeals) held that the value of the building was assessable in hands of the assessee as no registered sale deed was executed and registered in favour of the vendees and directed the Assessing Officer to determine the fair market value of the building at Rs. 3,50,000 inasmuch as same amount was taken in…

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