Law:

Section:

Section 7 of the Wealth-tax Act, 1957 - Valuation of assets - immovable property - Assessment years 1979-80 and 1981-82 - Assessee-HUF in respect of a house belonging to HUF and exclusively used for residential purposes, claimed benefit under section 7(4) - In past years, assessee claimed and availed exemption in respect of said house under section 5(1)(ivb) - Whether such exemption availed of in past in respect of said house would not preclude assessee from exercising its option under section 7(4) - Held, yes - Whether assessee, even though was an HUF, was entitled to benefit of section 7(4) in respect of said house - Held, yes FACTS The assessee-HUF claimed benefit under section 7(4) in respect of a house property belonging to the HUF. The WTO negatived the claim on the grounds that at no time in the past, the assessee had claimed the property to be self-occupied and that even though exemption was claimed in respect of the house property, it was under the provisions of section 5(1)(ivb) as a farm-house and that, in fact, in the year 1981-82, the assessee had claimed the property to be exempted under section 2(e)( 2)(b). He held that, on the principle of estoppel, the claim of the assessee for the benefit under section 7(4) could not be entertained. He further held that the HUF was not a natural person and, therefore, it was not entitled to claim the benefit of section 7(4). The Tribunal upheld the assessee's claim. On reference : HELD In the instant case, a finding of fact was reached by the Tribunal, by confirming the finding of the Commissioner (Appeals) that the house in question was exclusively used by the assessee for residential purposes and in view of the assessee having opted to specify the house for the purpose of valuation under sub-section (4) of section 7, the fact that in the past assessment years, the assessee had claimed an exemption in respect thereof under section 5(1)(ivb) was hardly relevant and such exemption availed of in the past in respect of the house did not preclude the assessee from exercising its option under the proviso to sub-section (4) of section 7 for the purpose of claiming the benefit of sub-section (4) as on the valuation…

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