CWT Vs. VENKATESH NARAIN GUPTA

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, Allahabad has referred the following question of law under section 27(1) of the Wealth Tax Act, 1957, hereinafter referred to as the Act: 'Whether, on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was correct in holding that the claim of the exemption under section 5(1)(iv) of the Wealth Tax Act for the assessment year 1980 -81 is allowable to the assessee as member of the Association of Persons with determinate share ?'

(2.) BRIEFLY stated the facts giving rise to the present reference are as follows: The present reference relates to the assessment year 1980 -81. The respondent had shown in the return the value of his 1/6th share in the house property bearing No. 24/23 Birhana Road, Kanpur owned by the A.O.P. M/s. Jagat Narain Rang Nath. The Wealth Tax Officer while framing the assessment disallowed the claim of the respondent under section 5(1)(iv) of the Act. The Appellate Assistant Commissioner, however, held that the claim is admissible to each co -owner. The revenue's appeal before the Tribunal has failed.

(3.) UNDER section 5(1)(iv) of the Act exemption was available to the assessee in respect of one house or part of the house belonging to the assessee as the respondent had 1/6th share in the house property which belonged to A.O.P. and A.O.P. not being a legal entity, it would be deemed when the assessee was owning the house in question. In this view of the matter the exemption was available to the assessee.