COMMISSIONER OF WEALTH TAX Vs. G CHELLAMMAL

JUDGEMENT

(1.) THERE are three questions of law referred at the instance of the Revenue relating to the assessee's assessment year 1975-76 for our consideration. They are :

(2.) THE assessee is a partner in a firm called Palaniappa Brothers and she had 7 1/2 per cent. interest in the property known as "Kannammai Building". THE assessee for the assessment year 1975-76 filed her return under the Wealth-tax Act and valued her interest in the firm at Rs. 2,65,383, and claimed a sum of Rs. 1,00,000 as exempt under Section 5(1)(iv) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act"). THE Wealth-tax Officer, in completing the assessment granted the exemption as prayed for and completed the assessment.

(3.) IN so far as the question regarding the grant of exemption under Section 5(1)(iv) of the Wealth tax Act to a partner is concerned, this court in the case of R. Venkatavaradha Reddiar v. CWT [1995] 214 ITR 76 has held that the partner alone should have the benefit under Section 5(1)(iv) of the Act to the extent of the respective share in the net wealth of the partnership firm. This court in another case, namely, CWT v. M.V. Annaporni Achi [1995] 214 ITR 592 has taken the view that the exemption under Section 5(1)(iv) of the Act is available to a co-owner. Therefore, whether the assessee is regarded as a partner or a co-owner, in either event, on the basis of the above two decisions of this court, the assessee would he entitled to exemption under Section 5(1) of the Wealth-tax Act and the grant of exemption in the individual assessment of the assessee by the Wealth-tax Officer cannot be said to be in any way erroneous and the Commissioner cannot form any reasonable belief that the order of assessment made by the Wealth-tax Officer was erroneous.