TMI Blog1984 (3) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... alth-tax Act, 1957, was allowable to the said individual partners ?" "2. Whether the Appellate Tribunal was right in holding that the term 'house' in section 5(1)(iv) of the Wealth-tax Act, 1957, would refer to any building irrespective of the purpose for which it was used ? The assessee and his two brothers are three partners in the firm of Messrs. S. M. K. Nataraja Nadar Sons, Virudhunagar. Before the Wealth-tax Officer, for the assessment year 1974-75, the valuation date being April 13, 1974, the assessee claimed exemption in respect of 1/3rd share of the value of the workshop building. The Wealth-tax Officer disallowed the claim by observing that in the income-tax assessment for 1973-74, he had held that the transfer of the asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounting year relevant to the assessment year 1973-74, entries were made in the books of the firm crediting the value of the vacant site and the workshop building in the firm's account and debiting 1/3rd share thereof to the accounts of each of the three partners of the firm. Thereafter, the assessee claimed for the assessment year 1973-74 on the basis of the said book entries that the building was transferred by the firm to the partners and, therefore, each of the partners is taken to own 1/3rd share in the building. The Wealth-tax Officer did not accept the above claim for the year 1973-74. Subsequently, for the year 1974-75 also, similar claim was made by the assessee. When that claim was dismissed, the assessee took the matter in appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be a division of the properties purchased in the name of the firm as amongst the partners by making entries in the accounts of the firm without actual dissolution of the firm, that even assuming that the firm's properties were owned and enjoyed in common by the partners, such common properties cannot be possessed and enjoyed in severalty unless there is a document in writing and that such a document will require registration if the value of the partner's interest in the properties exceeds Rs. 100. This court has taken the view that by virtue of mere book entries, the immovable property of the firm cannot be transferred to the partners. In this case, as already stated, originally the property belonged to the firm and before the partners ..... X X X X Extracts X X X X X X X X Extracts X X X X
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