COMMISSIONER OF WEALTH TAX Vs. ANGOORI DEVI

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, New Delhi, has referred the following questions of law under Section 27(1) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act"), for the opinion of this court : "1. Whether, on the facts and in the circumstances of the case, each of the assessees for each of the assessment years 1975-76 and 1976-77 was entitled to the deduction permissible under Section 5(1)(iv) of the Wealth-tax Act, 1957, in respect of the immovable property belonging to the firm of M/s. Laxmi Talkies, Mathura, where the assessees were partners ?

(2.) Whether, on the facts and in the circumstances of the case, the reversionary value of the land of the cinema building could be added to the market value worked out on yield basis ?" 2. The present reference relates to the assessment years 1975-76 and 1976-77. The respondent-assessees are partners in the firm styled as M/s. Laxmi Talkies, Mathura. The Wealth-tax Officer treated the interest of the asses-see in the aforesaid firm which owned immovable property and added to the "net wealth" of the assessee diverse amounts representing their respective share in the said firm, which was determined keeping in view the amounts invested therein. However, in the appeal filed by the respondent-assessee, the Assistant Commissioner of Wealth-tax directed the Assessing Officer to allow exemption under Section 5(1)(iv) of the Act in respect of the value of their share in the cinema building, if it exceeded the exemption granted by the assessing authority in each of the assessment. The Department took up the matter in appeal before the Tribunal. The Tribunal had dismissed the appeal.

(3.) We have heard Sri Shambhoo Chopra, learned counsel appearing for the Revenue, and Sri R. S. Agrawal, learned counsel appearing for the respondent-assessee.