As per Sec. 2(ea), "assets" mean, inter alia, any building, whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within 25 kms from local limits of any municipality or a cantonment board. The Definition of "assets" under Sec. 2(ea) also includes urban land.
The High Court opined that the words "any building" could not be read in isolation and had to be harmoniously construed with the remaining portion of Sec.2(ea) i.e., whether the building was used for residential or commercial purposes or for the purpose of maintaining a guest house, because an incomplete building could not be possibly either be used for residential or commercial purposes or for the purposes of maintaining a guest house. Therefore, the word "building" has to be interpreted to mean a completely built structure having a roof, dwelling place, walls, doors, windows, electric and sanitary fittings, etc.
Consequently, the incomplete building is not an asset chargeable to wealth tax.
The High Court opined that the words "any building" could not be read in isolation and had to be harmoniously construed with the remaining portion of Sec.2(ea) i.e., whether the building was used for residential or commercial purposes or for the purpose of maintaining a guest house, because an incomplete building could not be possibly either be used for residential or commercial purposes or for the purposes of maintaining a guest house. Therefore, the word "building" has to be interpreted to mean a completely built structure having a roof, dwelling place, walls, doors, windows, electric and sanitary fittings, etc.
Consequently, the incomplete building is not an asset chargeable to wealth tax.
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