Law: Wealth Tax Act, (XV of 1963)

Section: 2(e)(ii)

(a) Wealth Tax Act (XV of 1963)--- ----S. 2(e)(ii)---Immovable property when to be an asset under Wealth Tax Act, 1963---Essentials---Such property should be held for purpose of letting out. B.P. Biscuit Factory Ltd., Karachi v. Wealth Tax Officer-II Circle, Karachi 1981 PTD 217 and Ibrahim Brothers Ltd. v. Wealth Tax Officer, Circle-III, Karachi PLD 1985 Kar. 407 rel. (b) Wealth Tax Act (XV of 1963)----S. 2(e)(ii)---Leasing out Flour Mills installed in a building raised on plot of land---Liability to wealth tax ---Validity---Assessee had not leased out only the plant and machinery of Four Mills nor he was occupying the land and building, wherein Flour Mills was situated---Name Flour Mills had in fact been assigned to land and building, wherein plant and machinery of Flour Mills had been installed---Such assigning of name to a place by virtue of installation of specified nature of plant and machinery would not change actual fact that land and building was a one set of thing, while plant and machinery the other---Flour Mills was comprised of land, building, plant and machinery---Flour Mills having been leased out, thus, would include leasing out of land and building--­Terms "lease" and "letting out". are synonymous ---Assessee held immovable property comprised in land and building of Flour Mills for letting out, which was an asset within meaning of Wealth Tax Act, 1963 and liable to levy of wealth tax. Lauri Joseph Newton v. Commissioner of Taxation of Common Wealth of Australia 1959 PTD 273 and Commissioner of Income-tax, Madras v. A.M.M. Muhammad Ibrahim Sahib 1963 PTD 687 ref. B.P. Biscuit Factory Ltd., Karachi v. Wealth Tax Officer-II Circle, Karachi 1981 PTD 217 and Ibrahim Brothers Ltd. v. Wealth Tax Officer, Circle-III, Karachi PLD 1985 Kar. 407 fol. (c) Words and phrases----- ---"Lease" and "letting out" ----Synonymous. JUDGMENT GULZAR AHMED, J.---In this appeal under section 27 of the Wealth Tax Act, 1963 the appellant has raised the following questions:--- (1) Whether on the facts and in the circumstances of the case the learned Income Tax Appellate Tribunal was justified to hold that the learned Assessing Officer should estimate the value of Land and…

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