Law: Wealth Tax Act, 1957

Section: 5(1)(iv),27(1)

Wealth tax--- ----Reference---Partner's share in house owned by firm---Exemption of--­Tribunal correct in holding that a partner is entitled to exemption in respect of his share in a house belonging to the firm---No question of law arises---Indian Wealth Tax Act, 1957, Ss.5(1)(iv), 27. An assessee is entitled to exemption under section 5(1)(iv) of the Wealth Tax Act, 1957, in respect of his share in the building owned by the firm in which he is partner. [p. 1248] A CWT v. Kaethikamal Kumari Varma (1989) 179 ITR 543 (Ken); (1989) 2 KLT 251(1713) fol. Held, accordingly, that the question whether the assessee would be entitled to exemption under section 5(1)(iv) in respect of his share in the building owned by the firm need not be referred. JUDGMENT K. S. PARIPOORNAN J.----The Revenue is the petitioner herein. The matter arises under the Wealth Tax Act, 1957. The respondent is an assessee to wealth tax. We are concerned with the assessment year 1979-80. The assessee was a partner in a firm, Messrs M. M. Corporation. The firm owns a house at Bangalore. While valuing the interest of the assessee in the firm, the claim of the assessee for exemption under section 5 (1) (iv) was negatived by the Wealth Tax Officer on the ground that the house was not owned by or belonged to or held by the assessee. In appeal, the Appellate Assistant Commissioner, on the basis of a circular issued by the Board, held that the assessee will be entitled to 1/8th share in the total exemption of Rs.1,00,000 under section 5 (1) (iv). In second appeal, the Appellate Tribunal held that the assessee will be entitled to exemption under section 5(1)(iv) of the Wealth Tax Act, in respect of his share in the building owned by the firm. Thereafter, the Revenue filed an application under section 27 (1) of the Wealth Tax Act praying that the following question of law may be referred for the decision of this Court: "Whether, on the facts and in the circumstances of the case, the assessee would be entitled to…

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