The Commissioner Of Wealth Tax – 7, Mumbai v. M/S.rasiklal & Co. Private Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WEALTH TAX APPEAL (L) NO.3001 OF 2009 The Commissioner of Wealth Tax – 7, Mumbai ..Appellant. Versus M/s.Rasiklal & Co. Private Limited ..Respondent. Ms.Padma Divakar for the appellant. Mr.S.C. Tiwari with Mr.R. Asokan and Ms.Meghana Butala for the respondent. CORAM : Dr.D.Y. Chandrachud & J.P. Devadhar, JJ. DATE : 8[th] Ferbuary, 2010. P.C. : 1.The issue in the Appeal is as to whether the Income Tax Appellate Tribunal was justified in upholding the order of the Commissioner of Income Tax (Appeals) directing the Assessing Officer to exclude the value of a warehouse from the taxable wealth of the assessee. 2.In the present case, the assessee owns a warehouse at M.I.D.C., Turbhe, Navi Mumbai. The assessee has put the warehouse to use by providing warehousing services to its various clients. The Income Tax Appellate Tribunal has accepted that the prime object of the assessee was to let out a portion of the property to various occupants on monthly rental basis. The Tribunal held, following the judgment of the Division Bench of this Court in CWT V/s. CEMA (P) Limited, (2001) 248 ITR 629 (Bom) that the property was being used for commercial purposes and hence falls within the exclusion carved out by Section 2(ea) of the Wealth Tax Act, 1957. 3.Having regard to the finding of fact that has been entered in respect of the commercial nature of the property and user thereof, we do not find any reason to interfere with the order of the Tribunal, which does not give rise to any substantial question of law. The appeal is accordingly dismissed. There shall be no order as to costs. (J.P. Devadhar, J.) (Dr.D.Y. Chandrachud, J.)