Law: Finance Act, 1991

Section: 12,12(7)

(a) Finance Act (XII of 1991)----S. 12(1)---C.B.R. Letter C. No.3(1) WT/93, dated 19-4-1993--­Corporate Assets Tax ---Assessee a leasing company---Assets leased out to various lessees was not disclosed by the assessee---Department found that actual owner of such assets was the assessee/leasing company and lease-hold assets were their fixed assets chargeable to Corporate Assets Tax under the provision of S.7 of the Finance Act, 1991---Assessee contended that by virtue of lease the actual owner was the lessee and not the lessor and the same had wrongly been charged to Corporate Assets Tax--- Validity ---Agreement was of an ordinary lease rental in which .the asset was not compulsorily sold on completion of lease rental agreement---Factual position of the contract was that the assessee was owner of the assets leased out and this was not a case of a hire purchase agreement---Ownership remained with the assessee and the lessee was only a beneficiary as he was to utilize the machinery on payment of rental---Lessee , did not have right to claim ownership in any form--­Option .to buy was subject to total discretion of the seller who may or may not sell it ---Assessee had also the right to transfer the lease to a third party but the lessee did not have any right to further, sublet or transfer any part of the leased machinery/assets---Contracts nowhere indicated that such situation existed where a person could say with authority that the lessor was under compulsion to transfer the machinery in lease to. lessee on a fixed or determined value at a subsequent stage--­ownership had been transferred arid was to remain in the name of assessee while the right of alienation also remained with assessee--­Assets had been given on rent by the assessee and no one else had got any right to call such property as his belonging---Assets were fully owned by the assessee---If other company had shown it as its assets, this could not be used as a lever for misapplication of a. provision of law--­Assessee was fully liable to pay Corporate Assets Tax on such lease­hold assets. PLD 1986 SC 53 ref. (b) Finance Act (XII of 1991)--- ----S. 12(7)---Corporate Assets Tax---Additional tax…

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