Update. A took a plot of land on lease from MIDC and constructed a factory building on it. Due to recession and financial trouble could not start factory and gave the building on lease and recd rental income. Did not file WT return as claimed bldg exempt as commercial establishment AO charged WT as though factory building but since let out and not used for business and hence exemption u: 2(ea) not availaible. Mumbai Tribunal held that even a residential prop if let out for more than 300 days in a year is exempt from WT. Also even a house occupied for business or profession is exempt. This here is a factory building let out to be used as factory is obviously a commercial establishment eligible for exemption. Business done by lessee means the asset is used for business and eligible to be treated as. A commercial establishment and hence exempt from WT
Posted on: Tue, 13 Jan 2015 05:53:59 +0000