COMMISSIONER OF WEALTH TAX Vs. MD ISMAIL

JUDGEMENT

(1.) This is a,reference under the Wealth-tax Act, 1957. At the instance of the CWT, West Bengal-II, the Tribunal under Section 27(1) of the Act has drawn up a statement of case and has referred the following question as a question of law arising out of its order :

(2.) The relevant facts found and/or admitted in these proceedings are shortly as follows: The assessee had taken on lease a property known as Nos. 225B and 225C, Lower Circular Road, Calcutta, and had been running a boarding house therein. The lease expired in 1949, Thereafter there were proceedings between the landlord and the assessee which were ultimately settled. A fresh lease was executed on the 25th July, 1960, for a period of 21 years. Separate fixed rents for each period of 5 years within the total period of demise were stipulated in the said lease. In the assessment of wealth-tax of the assessee for the assessment year 1963-64, the relevant valuation date being 31st December, 1962, the WTO included in the net wealth the value of the said leasehold computed at Rs. 5,99,352. On appeal the AAC upheld the decision of the WTO.

(3.) There was a further appeal by the assessee to the Tribunal. It was contended on behalf of the assessee in the appeal that the leasehold interest of the assessee in the said premises was not an asset within the meaning of the W.T. Act, 1957, and it could not be taxed. The revenue contended on the other hand that the expression "asset" in the W.T. Act included both movable as also immovable property and a leasehold interest would be included within immovable property.