Whether lease agreement for a period for less than one year with an extension clause which is normally an agreement of Leave and Licence, will not be covered by section 4(8)(b) of the W-T Act and section 269UA(f) of the I-T Act.

Question 1: “Whether the value of an immovable asset owned by an assessee is includible in the net wealth of the owner/assessee or the lessee in terms of section 4(8)(b) of the Wealth Tax Act read with section 269UA(f) the I-T Act where the term of the lease is (i) exceeding 12 months but less than 12 years;and/or (ii) exceeding 12 years.”

Answer : It is the legal owner (i.e. the assessee in the case before us) who is liable to the wealth-tax levy on the value of specified assets licensed/leased by h

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