Per K.P.T. Thangal, Vice President. - This Special Bench has been constituted by the Hon’ble President under section 255(3). The issue referred to the Bench for the assessment year 1990-91 is as under: —

"Whether right to occupy premises belonging to a co-operative housing society are taxable assets under section 40 of the Finance Act, 1983 in the case of a private limited company?"

2. The facts, leading to the dispute, briefly, are as under :

Assessee has filed its Return of Wealth on 9-5-1991 declaring a net wealth of Rs. 1,20,400. Assessee is a company. Assessing Officer noticed that the assessee-company has not offered the value of the flat at Sterling Bay Co-operative Housing Society Limited for wealth tax purpose. In response to notice under section 17 of the Wealth-tax Act, assessee filed the Return on 5-5-1994 declaring a net wealth of Rs. 1,20,373. Assessee made repeated contention that the flat is not includible in the net wealth of the assessee. This is because the land and building belonged to the society and not to the assessee since it is merely an occupier of the flat. Assessing Officer rejected the above contention. He held that assessee being member of a co-opera