Interest in leasehold property includible in net wealth of assessee if he exercises power of owner on it

Brief of the case:

• The Hon’ble Bombay High Court in the case of Jaya Hind Sciaky Limited held that the words “belonging to” as used in sec 40(2) of the Act would include assets in possession of the Company without full Ownership, but sufficient domain over it, to exercise the powers which would otherwise normally vest in the owner on the valuation date.
• Further, it was held that a lease giving right to assessee to use the premises during lease period subject to complying with the terms & conditions as set out in the lease agreement. It create a sufficient interest of the assessee in the leasehold property to hold that the assets held by the assessee belongs to it.

Facts of the case:

• The assessee company had taken on lease a plot of land in Pimpri Industrial Area, village – Akrudi for a period of 95 years from Maharashtra Industrial Development Corporation (MIDC) having a total area 9605sq meters as per the lease deed. Assessee constructed a factory building, leaving a balance area of 2175 sq. meters. of the said plot as open land.
• Assessee filed its return of wealth declaring net wealth of Rs. 13 lacs which did not include the interest in lease hold open land. However, as per the AO the said land should form the part of wealth as the open land taken on lease by the assessee was an asset belonging to the Appellant in terms of Section 40(2) and (3) of the Act to be included to determine the net wealth chargeable to Wealth Tax under the Act.

• Commissioner of Wealth Tax (Appeals) upheld the order of AO by holding that the open land in which the assessee has lease hold rights over the next 95 years, is chargeable to wealth tax, as for all practical purposes, it belongs to the assessee within the meaning of expression “belonging to” used in Sec 40(2).Tribunal also concurred with the order of Commissioner (Appeals) on the same footing and dismissed the appeal of assessee.
• Aggrieved assessee is in appeal before the High Court.
  

Contention of the Assessee: