(1.) THIS is a reference under section 27(1) of the Wealth-tax Act, 1957 ("the Act", for short), requesting this court to decide the following question of law :
(2.) THE respondent/assessee alongwith his two brothers and father jointly enjoyed the house property bearing No. 14, Sterling Road, Madras, and claimed exemption under section 5(i)(iv) of the Act. It appears that one of his brothers also claimed this exemption; which was allowed to him in the original assessment. THE said assessment was, however, reopened and the exemption granted was withdrawn by the Income-tax Officer. THEreafter, an appeal was filed before the Appellate Assistant Commissioner, who held that each of the three brothers was entitled to exemption under section 5(1)(iv) of the Act, since each owned part of the house and each one of them had used the house property for residential purposes. THE Department appealed against the aforesaid judgment. THE Appellate Tribunal, however, held that the test of exclusiveness of the use of the house has to be determined with reference to the question, whether the assessee is user of the house as of right, and hence held that since the assessee was a co-owner and has a right to reside in the property, the benefit of exemption was available to the assessee and the appeal of the Department was dismissed. THEreafter, the Department requested for a reference and the same has been made as aforesaid.