COMMISSIONER OF WEALTH TAX Vs. DILHERKUNVERBA C JADEJA

JUDGEMENT

(1.) Smt. Mauna R.Bhatt, learned counsel for the Revenue. The office report shows that the assessee was served, however, nobody appears for the assessee.

(2.) Income-tax Appellate Tribunal, at the instance of the Revenue, has referred the following questions to this Court for its answer. W.T.R. No.80/95:

(3.) The facts necessary for disposal of the present matters are that, palace was belonging to Late Chandrasinhji D. Jadeja, who had executed a Will in favour of his wife/assessee and granted her life interest in the said property. On commencement of the assessment proceedings, Wealth Tax Officer did not grant any exemption in favour of the assessee holding that life interest was for more than six years. However, on appeal, the Commissioner of Wealth-tax(A) held that since the assessee occupied the residential palace from the very date of death of her husband, life interest in the palace was already available to her on the valuation date and, therefore, the same was includible in her wealth. However, following the decision of Madras High Court in the case of Commissioner of Wealth-tax, Tamil Nadu-V Vs. K. Ramachandra Chettiar, reported in., he held that the value of life interest is eligible for exemption under section 5[1][iv] of the Wealth Tax Act.