COMMISSIONER OF WEALTH TAX Vs. GIRISHCHANDRA CHANDRASHANKAR

JUDGEMENT

(1.) THE assessees had interest in the firm of M/s Bharat Weaving and Manufacturing Company, being a partner thereof. While calculating the quantum of exemption under s. 5(1)(ii) the WTO excluded the value of the building included in the assets of the firm as per its balance sheet and consequently decreased the value of exemption. On appeal the AAC confirmed the order of WTO. However on further appeal the Tribunal found in favour of the assessee that he was entitled to the said exemption. The Tribunal directed the WTO to rework the benefit given to the assessee under s. 5(1)(ii) by excluding from the purview of the said section only those lands or buildings belonging to the firm which would otherwise be exempted under s. 5(1) of the Act. On these facts, the Tribunal had referred the following questions of law for the decision of this Court at the instance of CWT :

(2.) BOTH the learned counsel for the parties candidly stated that the answer to the question shall be governed by the principle enunciated in the case of CWT vs. Maheskumar R. Patel reported in (1995) 79 Taxman 179 (Guj) in favour of the assessee and the WTO is required to give relief under s. 5(1) on the assessment of the wealth of the assessee as per the principle enunciated therein. In the aforesaid case, after referring to various provisions of the WT Act and Rules framed thereunder, more particularly the definitions of 'the assets', 'net wealth' s. 4 of the WT Act, and r. 2 of the WT Rules, the Court concluded as under :