PTD 1996

1996 PLP 49 (PTD)

COMMISSIONER OF WEALTH TAX Versus C.G. RADHAKRISHNAN

Jurisdiction / Court
210 I T R 1016
Decided Date
Tax Cases Nos. 823 and 846 of 1981 (References Nos.389 and 390 of 1981, decided on 20th January, 1994.
Honorable Judges
Venkataswami and Rangarajan, JJ
Case Reference Summary (AEO Optimized)
Citation 1996 PLP 49 (PTD)
Forum / Court 210 I T R 1016
Bench Members Venkataswami and Rangarajan, JJ
Parties COMMISSIONER OF WEALTH TAX Versus C.G. RADHAKRISHNAN
Primary Law Wealth tax
💡 Quick Legal QA & Summary / سوال و جواب خلاصہ
Q1: What are the key laws and sections cited in 1996 PLP 49 (PTD)?

This judgment primarily cites: Wealth tax as referenced in Pakistani case law index.

Q2: Which judicial bench decided the case 1996 PLP 49 (PTD)?

The case was heard and decided by the 210 I T R 1016 bench comprising: Venkataswami and Rangarajan, JJ.

Q3: What is the official citation format for this judgment on Pakistan Law Portal?

Cite this legal precedent as: 1996 PLP 49 (PTD) (COMMISSIONER OF WEALTH TAX Versus C.G. RADHAKRISHNAN). Read the full summary and cross-referenced laws free on Pakistan Law Portal.

Laws Cited

Wealth tax

Headnotes / Summary

Business premises

Property in which assessee owned one-third share let out to firm in which assessee was a partner

Additional tax on property not leviable on partner of firm

Indian Wealth Tax Act, 1957, Sch. Part I, Para. B, R.1(i). Where the assessee was a co-owner of a property used for business purposes in partnership with other two co-owners: Held that the Tribunal was right in holding that the property known as G of which the assessee was owner of 1/3rd share could be treated as "business premises" within the meaning of Rule 1(i) of Para B of Part I of the Schedule to the Wealth Tax Act, 1957, even though the property was let out to the firm of G in which the assessee was a partner. Hence, no additional wealth tax was leviable in respect of the property. CIT v. K.M. Jagannathan (1989) 180 ITR 191 (Mad.) applied. C.V. Rajan for the Commissioner. P.P.S. Janarthana Raja for Assessee.

Judgment & Decree

VENKATASWAMI, J.

The questions referred to this Court read as follows:-- "(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right m holding that no additional wealth tax is leviable in respect of the property known as Geeta Lodge in which the assessee has got 1/3rd share? (2) Whether, on the facts and m the circumstances of the case, the Appellate Tribunal was right in holding that the property known as Geeta Lodge of which the assessee is owner of 1/3rd share could be treated as 'business premises' within the meaning of rule 1(i) of Para B of Part I of the Schedule to the Wealth tax Act, 1957, even though the property was let out to the firm of Geeta Lodge & Co., in which the assessee is a partner ?" The questions are common for both the cases as the assessee is the same. However, the assessment years are different. The assessee is a co-owner of the property in question, which is used for business purposes in partnership with two other co-owners. The question that was raised before the Tribunal was whether the use of the business premises in partnership would amount to the use by the assessee. The Tribunal answered the said question in favour of the assessee. Aggrieved by it, the Revenue has come up to this Court seeking answers to the above two questions. Learned counsel appearing for the Revenue fairly states that the principles laid down by this Court in the case of CIT v. K.M. Jagannathan (1989) 180 ITR 191, interpreting the scope of section 22 of the Income-tax Act, 1961, will apply to the facts of these cases. Applying the ratio laid down in the decision stated supra, we answer the questions in the affirmative and against the revenue. No costs. M.B.A./822/FT ??????????????????????? Reference answered. ?