Law:

Section:

Sections 2(c) and 5(1)(iv) of the wealth-tax act, 1957-Exemption-Residential house-Whether in respect of residential property owned by deceased executor and/or beneficiaries of will using deceased's property whenever they found it necessary, could be treated as "assessee" under section 2(c)-Held, yes-Whether executor is entitled to claim exemption of property for residential use under section 5(1)(iv)-Held, Yes Facts The assessee, an executor of the Will executed by late P, died on 26-4-1956. He was survived by his wife and a son authorizedly adopted after his death. For the assessment years 1965-66 to 1967-68, executor has been assessed under section 19A(1). It was claimed that a residential house, forming a part of estate of deceased, was exempt under section 5(1)(iv). The claim was negatived both by the WTO and the AAC but allowed by the Tribunal as the conditions of the section were satisfied The Tribunal found that the executor has been using the house for residential purposes, whenever he found it necessary, and the beneficiaries of the Will have also been using it for their residence. On reference : Held 1.The executor has been shown as the assessee not only in the assessment order and other orders but also in the reference. The wealth- tax proceedings have been initiated for determination of wealth-tax payable by the executor as an "assessee" coming within the ambit of section 2( c)(i). In view of the Tribunal's findings that the executor and the beneficiaries of the Will have been using the same property for residential purposes, and the fact that the same has not been used in any other way, the property undoubtedly belongs to the assessee as a part of the estate of late P. 2.The assessee may himself live or allow any member of his family to live or use the same for residential purposes. He may not actually use the building throughout the year and may permit its residential use to some of his relatives/friends. Unless he has let out the same for rent or has allowed it to be used for any commercial purpose, it cannot be said that he has not exclusively used it for residential purposes. The requirement of exclusive use of building for residential…

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