Law: Wealth Tax Act, (XV of 1963)

Section: 5,16(3),First Schedule,Second Schedule

Assessment -- Self occupied house -- Exemption -- Disallowance -- Validity -- Assessee filed wealth tax return -- Contention that exemption of self-occupied shop as well as statutory exemption of Rs.10,00,000/- was allowable repelled by Wealth Tax Officer -- A.A.C. accepted appeal and directed Assessing Officer to allow exemption -- Appeal against -- Option in lieu of exemption limit -- Exercise of -- Effect -- Exemption was contingent upon option -- Question for determination -- Whether assessee was entitled to avail exclusion from his assets in respect of one house occupied by him for the purpose of his own residence while exercising option in lieu of exemption limit of Rs.10,00,000 -- Held yes -- Whether assessee was also entitled to avail exclusion exemption from his assets in respect of one shop occupied by him for the purpose of his own business or profession which was not contingent upon any option -- Held yes -- Whether any exception could be taken to the conclusion arrived at by A.A.C. in the impugned order -- Held no -- Exemption -- Assessee claimed exemption of shop being self- occupied and statutory exemption of Rs.10,00,000 -- Statutory exemption of Rs.10,00,000 was rejected on the ground that exemption of Rs.10,00,000 and a shop at the same time was against the spirit of law as the law provides self-occupied shop + self-occupied house or Rs.10,00,000 -- Validity -- Exemption of Rs.10,00,000 was not allowable to an assessee exercising option under clause (12) of Part I of the Second Schedule for his claiming exemption in respect of one house owned and occupied by the assessee for his own residence -- Shop was not mentioned in proviso (b) of sub-para (2) of para -- A of Part I of the First Schedule as to have also been excluded from the application of proviso (a) of sub-para (2) of para -- A of Part I of the First Schedule of the Wealth Tax Act, 1963 -- Shop had been listed at sub-clause (2) of clause (12) of Part I of the Second Schedule to which no proviso or exception had been attached as had been entered under sub-clause (1) of clause (12) of Part I of the Second Schedule of Wealth Tax Act, 1963 -- Assessee should have either opted for availing…

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