TMI Blog2003 (4) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... n the past in respect of that house did not preclude the assessee from exercising its option under the proviso to sub-section (4) of section 7 for the purpose of claiming the benefit of sub-section (4) – Thus question is answered in positive - - - - - Dated:- 28-4-2003 - Judge(s) : R. K. ABICHANDANI., K. M. MEHTA. JUDGMENT The judgment of the court was delivered by R.K. ABICHANDANI J.-The Income-tax Appellate Tribunal, Ahmedabad Bench "C", has referred the following question of law for the opinion of this court under the provisions of section 27 of the Wealth-tax Act, 1957: "Whether, on the facts and in the circumstances of the case and in law, the Tribunal is right in holding that the assessee (HUF) despite its being an Hindu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at any stage even if it was not made earlier. It was found that the property known as "Dhairya Prasad" was self-occupied by the assessee-Hindu undivided family and that even the Departmental Valuation Officer had stated in his report that, the said house was wholly used for residential purpose. The appellate authority also held that the Hindu undivided family was an "assessee" within the meaning of section 7(4) and, therefore, was entitled to the benefits thereof, since the assessee, as defined under section 2(c) of the Act means a person by whom the wealth-tax or any other sum of money was payable under the Act. It was held that since the Hindu undivided family was an assessable entity under the provisions of the said Act, it was entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,1971. It is clear from the record that the house in question has been found by all the authorities to have been used for residential purposes during the period relevant to the three assessment years. The Tribunal took note of the report of the Departmental Valuation Officer that the property in question was wholly occupied by the Hindu undivided family. It was also found that the property was suitable for stay of the concerned family and it was not meant to be used simply as a farm-house. The finding of the Tribunal and the authorities below it, that the house in question was used by the assessee-Hindu undivided family for residential purpose, based on the material that was produced on record, is not questioned before us. Even before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vious year as defined in section 3 of the Income-tax Act, if an assessment were to be made under that Act for that year, subject to what has been mentioned in the proviso to clause (q) of section 2. In sub-section (4) of section 7, it has been provided that notwithstanding anything contained in sub-section (1), the value of a house belonging to the assessee and exclusively used by him for residential purposes throughout the period of twelve months immediately preceding the valuation date may, at the option of the assessee, be taken to be the price which, in the opinion of the Wealth-tax Officer, it would fetch if sold in the open market on the valuation date next following the date on which he became the owner of the house, or on the valuat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the same house, exemption was earlier availed of under the provisions of section 5, will not preclude the assessee from claiming the benefit of valuation under subsection (4) of section 7, when he opts to specify such house which he uses for residential purposes for the purpose of the valuation under the proviso to sub-section (4) of section 7. In the present case a finding of fact is reached by the Tribunal, confirming the finding of the Commissioner of Wealth-tax (Appeals) that, the house in question was exclusively used by the assessee for residential purposes, and, in view of the assessee having opted to specify this house for the purpose of valuation under sub-section (4) of section 7, the fact that in the past assessment years, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med to be an assessee under the Act; (iii) every person who is deemed to be an assessee in default under the Act. The charging provision of section 3, in terms, refers to Hindu undivided family when it lays down that, subject to the other provisions contained in this Act, there shall be charged for every assessment year commencing from the 1st day of April,1957, a tax referred to as wealth-tax in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company at the rate or at the dates specified in Schedule I. Thus, the Hindu undivided family is recognized as a legal entity for the purpose of assessment under this Act. The provisions are made for assessment in special cases in Chapter V ..... X X X X Extracts X X X X X X X X Extracts X X X X
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