Law: Wealth Tax Act, 1957

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

Law: Wealth Tax Rules, 1957

Section: 2

Wealth tax--- ----Firm---Partner---Partner entitled to exemption under S.5(1)(iv) in respect of his share in land and building owned by firm---Indian Wealth Tax Act, 1957, S.5. Held, that the Tribunal was right in law in holding that the assessee was entitled to exemption under section 5(1)(iv) of the Wealth Tax Act, 1957, in respect of his share in the land and building owned by the firm in which he was a partner: CWT v. Vipin Kumar (1993) 203 ITR 941 (P&H) fol. CWT v: Sarabjit Singh W. T. R. Nos. 187 and 188 of 1989 rel. Addanki Narayanappa v. Bhaskara Krishnappa AIR 1966 SC 1300; CWT v. Christine Cardoza (Sint.) (1978) 114 ITR 532 (Kar.); CWT v. Mira Mehta (1985) 155 ITR 765 (Cal.); CWT v. Tarachand Agarwalla (1989) 180 ITR 234 (Gauhati); CWT v. Vasantha (1973) 87 ITR 17 (Mad.) and Juggilal Kamlapat Bankers v. WTO (1984) 145 ITR 485 (SC) ref. JUDGMENT N. K. AGRAWAL J.-The following common question -arising from the three assessees' wealth tax cases for the assessment year 1978-79 has been referred by the Income-tax Appellate Tribunal (the "Tribunal"), at the instance of the Department under section 27(1) of the Wealth Tax Act, 1957 (for short, "the Act"): "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was entitled to exemption under section 5(1)(iv) in respect of his share in the land and building owned by the firm styled Greatway in which he is a partner?" The assessees were partners in a partnership firm. They claimed exemption for their shares in the property of the firm under section 5(1)(iv) of the Act. The Wealth Tax Officer declined to allow exemption, holding that property belonged to the partnership firm whereas the exemption was available to a house or part of a house belonging to the assessee. The Tribunal took the view that exemption was to be allowed to the assessees in respect of their, shares in the property held by the firm and the value of their shares was not to be included in their taxable wealth. A Division Bench of this Court had an occasion to examine a similar question in CWT v. Vipin Kumar (1993) 203 ITR 941. After examining the question whether the assessee…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492