COMMISSIONER OF WEALTH TAX Vs. N GNANAMANI

JUDGEMENT

(1.) AT the instance of the Revenue, the following two questions have been referred to this court by the Income-tax Appellate Tribunal for its opinion :

(2.) 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 from the firm to the partners by mere journal entries was not valid and that the firm's asset cannot be considered as belonging to the partners while the firm was still continuing. THE Wealth-tax Officer, therefore, included the sum of Rs. 71,233 being the 1/3rd share in the value of the workshop building in the net wealth of each of the three partners inclusive of the assessee.

(3.) IN view of our answer to the first question, we are not inclined to answer the second question, because it is only academic. We, therefore, return the second question unanswered. There will be no order as to costs.