TMI Blog1996 (1) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and in the circumstances of the case, in computing the net wealth of a firm under rule 2 of the Wealth-tax Rules, assets exempt under section 5 should be excluded, or whether such assets also should be included therein and then apportioned among the partners for granting exemption in their individual assessments after computing their own individual net wealth ?" The occasion for such a reference was the conflicting views taken on this point by the Karnataka and the Patna High Courts. The relevant assessment year is 1975-76 corresponding to the valuation date March 31, 1975. The assessee-Hindu undivided family had an interest in the firm called Properties Development Syndicate through its karta who is the partner of the firm. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereafter, he shall give deductions in respect of the assets exempted under section 5 to the extent to which the assessee is entitled to such exemption. The balance will be the taxable net wealth of the assessee on which the wealth-tax will be imposed. We direct the Wealth-tax Officer to redo the assessment accordingly." At the instance of the Revenue, the above quoted question of law has been referred directly for decision by this court under section 27(3A) of the Act. Having heard learned counsel, we are of the opinion that the view taken by the Tribunal is correct. In the statement of case, the Tribunal has stated the correct position as under : "The third case would be one in which the claim for exemption is to be considered only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose was whether the expression 'net wealth' would mean the determination of the net wealth after deducting the exemptions available under the Act. Though the word 'net wealth' was not defined in the Rules. Rule 1A(m) states that all words and expressions not defined in rule 2 have the same. meaning assigned to them in the Act and it had also been held by the Madras High Court in CWT v. Vasantha [1973] 87 ITR 17 that the word 'net wealth' in rule 2 has to be understood according to the definition given in section 2(m) of the Act. The definition stated that 'net wealth' means the amount by which the aggregate value computed in accordance with the provisions of the Act of all the assets, belonging to the assessee is in excess of the aggregate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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