COMMISSIONER OF WEALTH TAX Vs. APPUSWAMY M

JUDGEMENT

(1.) AT the instance of the Department, the Tribunal referred the following common question for the opinion of this court, under section 27(3) of the Wealth-tax Act, 1957, hereinafter referred to as "the Act", for the assessment years 1974-75, 1975-76 and 1976-77 :

(2.) THE assessee is assessed to wealth-tax for the assessment years 1974-75, 1975-76 and 1976-77. He is a partner in Sree Santhanalakshmi Mills, Pollachi. In valuing his interest in the firm, he claimed exemption under section 5(1)(iv) of the Wealth-tax Act, in respect of a godown owned by the firm. THE Wealth-tax Officer rejected the assessee's claim on the ground that the godown could not be treated as a "house" within the meaning of section 5(1)(iv) of the Act. He accordingly, added back a sum of Rs. 50,000 to the net wealth of the assessee in each year.

(3.) THE Central Board of Direct Taxes issued Circular F. No. 317/8/73-WT, dated July 9, 1975, which runs as under :