Law: Wealth Tax Act, 1957

Section: 5(1)(iv)

Wealth tax-----Reference---Exemption---Firm---Partner---Building owned by firm--­Commercial building also regarded as a house for purpose of S.5(1)(iv)--­Tribunal correct in holding that partner was entitled to exemption in respect of his share in firm in respect of property owned by firm---No question of law arose---Indian Wealth Tax Act, 1957, Ss.5(1)(iv) & 27. Held, that the Tribunal was right in holding that though the building was a commercial building, the building being a hotel, it was entitled to exemption under section 5(1)(iv) of the Wealth Tax Act, 1957, and similarly the partner of the firm was eligible for relief in respect of his share of his interest in the property owned by the firm in which the assessee was a partner. Accordingly, no question of law arose for reference. CWT v. Thav'amani (1999) 237 ITR 152 (Mad.) and R. Venkatavaradha Reddiar v. CWT (1995) 214 ITR 76 (Mad.) fol. Jagdish Chandra Grover v. CWT (1985) 156 ITR 560 (MP); Ravi Mohan v. CWT (1989) 180 ITR 667 (MP); Tata -Engineering and Locomotive Co. Ltd. v. Gram Panchayat AIR 1976 SC 2463 and (1976) 4 SCC 177 ref. JUDGMENT R. JAYASIMHA BABU, J.---The Revenue's contention is that exemption under section 5(1)(iv) of the Wealth Act,. 1957, cannot be granted in respect of the share of the partner in a building owned by the firm. The building in this case being a hotel and the assessment years in this case being 1983-84 to 1985-86. The subsidiary contention is that the building in respect of which the exemption can be granted should be a residential building and not a commercial building. The Tribunal has held otherwise. The Tribunal has relied on…

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