COMMISSIONER OF WEALTH-TAX Vs. PRAMOD KUMAR AGARWAL

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, New Delhi has referred the following question of law under section 27(1) of the Wealth Tax Act, 1957 (hereinafter referred to as the 'Act') for opinion of this Court: 'Whether the ITAT is legally correct in holding that the assessee was entitled to exemption under section 5(1)(iv) of the W.T. Act in respect of his share in the value of immovable property which belonged to the firm of which the assessee is a partner?'

(2.) BRIEFLY stated the facts, giving rise to the present case, are as follows. The reference relates to the assessment year 1981 -82. The Income Tax Appellate Tribunal has made a reference in respect of five persons similarly situated. All the five persons are partners in different firms, which own a Cinema Hall. They claimed exemption under section 5(1)(iv) of the Act in respect of their share in the Cinema Hall. The exemption was disallowed by the Wealth -tax Officer. However, the Commissioner (Appeals) had allowed the exemption under the aforesaid provisions. The revenue's appeal before the Tribunal has failed. In favour of revenue.

(3.) RESPECTFULLY following the aforesaid decision, we answer the question ref erred to us in the negative, i.e., in favour of the revenue and against the assessee. There shall be no order as to costs.