TMI Blog2002 (3) TMI 925X X X X Extracts X X X X X X X X Extracts X X X X ..... iv) of the Wealth Tax Act in respect of his interest in a firm which owned immovable properties 2. Facts, in brief, relevant for the purpose, of answering the questions are that Shri Tulsi Dass (hereinafter shall be referred to as 'the assessee') is a partner in M/s Gopal Talkies, Alwar, a partnership firm. The assessee-submitted return of his properties before the Wealth Tax Officer and shown the credit balance in M/s Gopal Talkies, Alwar, amounting to ₹ 1,03,210 (Rs. one lakh three thousand two hundred and ten only). The partnership firm M/s Gopal Talkies in its books of accounts had shown the value of Gopal Takes at ₹ 7,25,000 (Rs.seven lakh twenty-five thousand) inclusive of the cost of the building. During the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the valuation officer of Gopal Talkies, the notice was given to M/s Gopal Talkies, the firm and, therefore, the valuation could not have been struck down on the basis that the assessee was not given notice. It is an admitted fact that no notice whatsoever was ever issued by the valuation officer to the assessee as required by the provisions contained in section 16A(2) of the Act of 1957. Section 16A (2) of the Act of 1957 requires that the valuation officer before estimating the value of any asset in pursuance of the reference made under sub-section (1) of section 16A, may serve a notice on the assessee requiring him to produce or cause to produce on a date specified in the notice, such accounts, records or other documents as the valuation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal striking out the valuation put forth by the valuation officer on the ground of non-service of notice on the assessee does not require any interference and the question 4. As regards another question which has been referred to us whether the assessee is entitled for exemption under section 5(1)(iv) of the Act of 1957. Relevant provision reads as under : Wealth-tax shall not be payable by an assessee in respect of following assets (and such assets shall not be included in the new wealth of the assessee): Clause (iv) One house or part of house belonging to the assessee: Provided that, where the value of such house or part exceeds one hundred thousand rupees, the amount that shall not be included in the net wealth of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to his apportioned share of the property belonging to the partnership firm of which he is a partner. The decision rendered by the Apex Court is binding and thus the submission made by the learned counsel for revenue is not accepted. 7. It is then submitted by the learned counsel for revenue that the assessee would be entitled to exemption only if the house or part of the house, belongs to the assessee, is a residential accommodation and not a business or commercial accommodation. For this submission he has placed reliance on the decision rendered in CWT v. V.T. Ramalingam Ors. (1993) 201 ITR 839 (Mad) in which, while construing unamended section 5(1)(iv) of the Act of 1957, the Madras High Court has held that the availability of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;, the Full Bench has held that for claiming exemption what is required is that the house should have been exclusively used by the assessee for residential purposes and that means that it should not have been let out for rent or for use of commercial purposes. Thus, while construing that section, it has been held that the house shouId be used for residential purposes which would necessarily mean the house is a residential house for claiming exemption. The decision of the Full Bench has also no application to the present section wherein the assessee is entitled to exemption under clause (iv) of section 5(1) in regard to one house or part of a house belonging to the assessee. It is not required that the house should be exclusively used by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
