TMI Blog1997 (2) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... thanalakshmi Mills, the exemption under section 5(1)(iv) of the Wealth-tax Act should be granted to the firm in respect of a godown owned by it and the assessee's share should be arrived at on the basis of the net wealth of the firm so arrived at?" The assessee is assessed to wealth-tax for the assessment years 1974-75, 1975-76 and 1976-77. He is a partner in Sree Santhanalakshmi Mills, Pollachi. In valuing his interest in the firm, he claimed exemption under section 5(1)(iv) of the Wealth-tax Act, in respect of a godown owned by the firm. The Wealth-tax Officer rejected the assessee's claim on the ground that the godown could not be treated as a "house" within the meaning of section 5(1)(iv) of the Act. He accordingly, added back a sum o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Direct Taxes issued Circular F. No. 317/8/73-WT, dated July 9, 1973, which runs as under : "Instruction No. 568. XIX-VII/29---Exemption under section 5(1)(iv) of the Wealth-tax Act---Meaning of the word 'house'.--- Under clause (iv) of sub-section (1) of section 5 of the Wealth-tax Act one house or part of a house belonging to the assessee is exempt from wealth-tax up to a limit of Rs. one lakh. Under this clause as it stood prior to the amendment made by the Finance (No. 2) Act, 1971, with effect from April 1, 1972, the exemption was available only if the house or part of the house was exclusively used by the assessee for residential purposes. The expression exclusively used by the assessee for residential purposes was dropped by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the statute. It was further held that the word "house" extends to a building, which is used for business and should not be restricted to a mere dwelling house. It is not limited to a structure designed for human habitation, and may mean a building or shed intended or used as a habitation or shelter for animals of any kind, a building in the ordinary sense or any building, edifice, or structure enclosed with walls and covered, regardless of the fact of human habitation. Under particular circumstances, the term has been held equivalent to and interchangeable or synonymous with "building", "dwelling" and "dwelling house" and sometimes premises. Our attention was drawn to a decision rendered in R. Venkatavaradha Reddiar v. CWT [1995] 214 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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