RANGASWAMY M Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE above tax cases are by way of reference to this court from the Income-tax Appellate Tribunal, Madras Bench, under section of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act"), referring the following two questions for the opinion of this court :

(2.) THE facts and circumstances in which these questions arose and were referred to this court are almost similar, except perhaps that they relate to different assessees, assessment years and with reference to a different quantum of net wealth in individual cases. THE broad and relevant facts necessary to appreciate the problems posed for our opinion may be set out hereinafter before undertaking a consideration of the relevant questions themselves. THE assessees are individuals who are partners in firms owning estates and holding tea or coffee gardens. While computing the net wealth of the respective assessees, the Wealth-tax Officers concerned added the value of the interest of the assessee-partner in the firm as movable property and computed it as a share of net wealth of the firm. While doing so, the Wealth-tax Officer excluded the exempted assets to the extent provided under section 5 of the Act. THE assessees also claimed that the tea and coffee bushes in the gardens of the estates must be treated as standing crops and exempted under section 5(1)(viiia) of the Act without any limit unlike the agricultural lands which were exempt under section 5(1)(iv)(a) of the Act only up to the specified and prescribed limit.

(3.) IT is also necessary to set out section 2(e) of the Act, which reads hereunder :