Law:

Section:

Section 5(1)(iv) of the Wealth-tax Act, 1957 - Exemption - One house or part of house belonging to assessee - Assessment year 1978-79 - Assessee purchased flat and on payment of full consideration obtained possession thereof - However, no conveyance deed was drawn up - Whether in view of fact that assessee had full user and possession of flat and she could not be evicted therefrom, it was to be held that flat in question belonged to her and she was entitled to exemption under section 5(1)(iv) - Held, yes FACTS The assessee purchased a flat and on payment of a total consideration, she obtained possession of the said flat. No deed of conveyance was drawn up. The WTO, therefore, recorded a finding that the assessee did not acquire any title to the said flat. He, therefore, declined to allow exemption under clause (iv) of section 5(1). On appeal, the AAC allowed the exemption. The Tribunal dismissed the revenue's appeal. On reference : HELD If the property does not belong to the assessee, the WTO could not have included the value of such property in the net wealth of the assessee. The WTO can only include such property or asset as belongs to the assessee. If the flat in question belonged to the assessee as an asset for the purpose of assessment, in that event, the exemption under section 5(1)(iv ) could not be denied to the assessee as admissible to such an asset. The flat which had been allotted to the assessee by the promoter of the multi-storeyed building against payment and of which the assessee had the full user and possession and from which the assessee could not be evicted by the promoter must be held to be belonging to the assessee. Therefore, the Tribunal was justified in holding that the said house belonged to the assessee and thereby allowing the exemption under clause (iv) of section 5(1). Note : The case was decided in favour of the assessee. CASE REFERRED TO Madgul Udyog v. CIT [1990] 184 ITR 484 (Cal.). S.K. Chakraborty for the Applicant. JUDGMENT Ajit K. Sengupta, J.-This is a reference under section 27(1) of the Wealth-tax Act, 1957, for the assessment year 1978-79. Shortly stated, the facts are that, in pursuance of an agreement, the assessee…

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