Law:

Section:

Section 25 of the Wealth-tax Act, 1957 - Revision - Of orders prejudicial to interests of revenue - Due to wrong interpretation of provision of section 5(vi) petitioner could not claim exemption with effect from assessment year 1994-95 in respect of their commercial house property - Coming to know true legal position petitioners claimed exemption through revision petition under section 25 - Commissioner dismissed revision petitions on ground of limitation - Whether in view of various amendments to provision for grant of exemption in respect of house belonging to assessee and in view of common parlance where 'house' generally would mean residential house not commercial premises, if petitioners failed to claim exemption under section 5(vi), it could not be said that in facts and circumstances of case, delay of up to 3 years was unreasonable - Held, yes - Whether, therefore, matter would be remanded to Commissioner for deciding revision petitions on merit - Held, yes FACTS According to the petitioner, through oversight and because of wrong interpretation of the provision granting exemption under section 5(iv) with effect from the assessment year 1994-95, he did not claim exemption in respect of one house or part of the house belonging to the respective petitioners. The petitioners and their chartered accountant were under the belief that with effect from the assessment year 1994-95, the amendment in the Act by the Finance Act, 1992, granting exemption under section 5(vi) was applicable only in respect of the residential house property and not in respect of any commercial property, but while preparing the wealth-tax return for the assessment year 2002-03, the petitioners' chartered accountant came to know about the CBDT circular clarifying that the exemption under section 5(vi) was applicable for any house or part of the house, whether residential or commercial. Hence, after claiming such exemption the petitioners, filed petitions under section 25. The Commissioner dismissed the revision petition on ground of limitation. On appeal : HELD In view of various amendments to the provision for grant of exemption in respect of house belonging to the assessee and in view…

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