COMMISSIONER OF WEALTH TAX Vs. R ARIFF

JUDGEMENT

(1.) THE Revenue's contention is that exemption under Section 5(1)(iv) of the Wealth-tax Act, 1957, cannot be granted in respect of the share of the partner in a building owned by the firm. THE building in this case being a hotel and the assessment years in this case being 1983-84 to 1985-86. THE subsidiary contention is that the building in respect of which the exemption can be granted should be a residential building and not a commercial building. THE Tribunal has held otherwise.

(2.) THE Tribunal has relied on the decisions of the Madhya Pradesh High Court in Jagdish Chandra Grover v. CWT [1985] 156 ITR 560 and Ravi Mohan v. CWT [1989] 180 ITR 667 and has held that though the building is a commercial building, the building being a hotel, the exemption sought for can be granted. This court in the case of CWT v. Thavamani [1999] 237 ITR 152 after referring" to the earlier decisions of this court and also the decision of the Supreme Court in Tata Engineering and Locomotive Co. Ltd. v. Gram Panchayat, has held that the expression "house" is not limited to a structure designed for human habitation and that a workshop building can also be regarded as a house for the purpose of Section 5(1)(iv) of the Wealth-tax Act, 1957.