COMMISSIONER OF WEALTH TAX Vs. RADHEY MOHAN NARAIN

JUDGEMENT

(1.) In this reference under Section 27(1) of the W.T. Act 1957, the following question has been referred for the opinion of this court :

(2.) The assessee is a partner in M/s. Radhey Mohan Narain Laxman Babu. For the assessment year 1973-74, the assesses claimed relief under Section 5(1)(xxxii) of the W.T. Act in respect of his interest in the firm. The WTO found that the said firm was engaged in trading in printed cloth, had no fixed assets of its own and was getting its trade requirements of goods from others on job work basis. The firm's work itself did not involve manufacturing or processing work and, consequently, he rejected the assessee's claim. On appeal, the AAC upheld the claim of the assessee. The Tribunal dismissed the appeal preferred by the Commissioner of Wealth-tax upholding the view taken by the AAC that the firm was an industrial undertaking.

(3.) Section 5(1) of the W.T. Act provides that subject to the provisions of Sub-section (1A) wealth-tax shall not be payable by an assessee in respect of the following assets and such assets shall not be included in the net wealth of the assessee: