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TMI Blog1986 (5) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... ing exemption under section 5(1)(iv) of the Wealth tax Act. 1957, ['the act'] in respect of the land gifted by the assessee to his wife and added back to his net wealth under section 4(1) of the Act. 2. The admitted facts are that the assessee, an individual has settled a piece of land in favour of his wife who had constructed a house thereon with her own funds. Applying the provisions of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80] 126 ITR 245 [Ori.] CWT v. K. M. Eapen [1978] 114 ITR 415 [Kar.] and particularly CIT v. Teritex Knitting Industries [P.] Ltd. [1978] 114 ITR 634 [Bom.] and V. Vaidyasubramaniam v. CWT [1977] 108 ITR 538 [Mad.] it was contended that the land was married to the superstructure and should, therefor, be regarded as a house for the purpose of section 5(1)(iv). 4. On a consideration of the rival sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he should be entitled to the exemption as if it was part of a house. Section 5(1)(iv) exempts one house or part of a house belonging to the assessee. If the contention were that what was transferred had been converted into another asset which is exempt then it is understandable. In the case of V. Vaidyasubramaniam the cash gifted had been converted into a house and because of section 4(3) that con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is quite a different matter to say that a land under the house which is independently added to the net wealth of the assessee could be treated as part of the house which has been constructed by the wife. When section 4(3) states that the provisions of section 5 shall apply in relation to such assets as if such assets were assets belonging to the assessee, it can only refer to the set which is bein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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