TMI Blog1987 (8) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee's interest in the assets of Venugopal Rice Mills which has been leased out ?" The assessee filed his wealth-tax return for the assessment year 1974-75 declaring his net wealth which included interest in a partnership firm known as Venugopal Rice Mills. The partnership interest was assessed at Rs. 9,029 and exemption was claimed in respect of the same under section 5(1)(xxxii) of the Act. The Wealth-tax Officer rejected the claim for exemption on the ground that the firm was defunct and no business was carried on during the previous year relevant to the assessment year 1974-75. The matter was carried in appeal to the Appellate Assistant Commissioner of Wealth-tax, but without success. The assessee then appealed to the Income-tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed manner of the interest of the assessee in the assets (not being any land or building or any rights in any land or building or any asset referred to in any other clause of this sub-section) forming part of an industrial undertaking belonging to a firm or an association of persons of which the assessee is a partner, or, as the case may be, a member..." The expression "industrial undertaking" occurring in clause (xxxii) is defined in the Explanation occurring after clause (xxxi). The term "industrial undertaking", according to the Explanation, means an undertaking engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on business, it cannot be said that the terms of clause (xxxii) are not satisfied. As we have already pointed out, it is not possible to support the inference that the partnership firm ceased to carry on business, or that it be lame defunct, merely from the fact that it had leased out the rice mill to outsiders during the previous year. It must be said that in the previous year relevant to the assessment year 1974-75, and, therefore, on the valuation date corresponding to the assessment year 1974-75, the partnership firm was an "industrial undertaking" engaged in the manufacture or processing of goods, so that the exemption under clause (xxxii) is available. In our opinion, the Tribunal was justified in granting exemption to the assessee in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
