COMMISSIONER OF WEALTH TAX Vs. P BABUL REDDY

JUDGEMENT

(1.) Under s. 27(1) of the WT Act, 1957, the following question is referred for our opinion at the instance of the Revenue :

(2.) To answer the question it would be necessary to note the relevant facts here. The assessee is an HUF. For the asst. yrs. 1977-78 and 1978-79, under the WT Act, the assessee included the value of the flat at Rs. 70,000 and Rs. 80,125 respectively. The assessee claimed exemption under s. 5(1)(iv) of the WT Act, on the ground that that was the only flat belonging to the joint family. Inasmuch as there was no registered document conveying the flat in favour of the assessee, the WTO did not allow the exemption under the said provision. The assessee unsuccessfully carried the matter in appeal. In second appeal before the Tribunal, it was held that the assessee was entitled to exemption under the said provision. On these facts, the abovesaid question arose.

(3.) The learned standing counsel for the Revenue vehemently argues that as the assessee did not have title to the flat in question and as the same was not conveyed under a registered document which is a must under s. 54 of the Transfer of Property Act, the Tribunal erred in allowing the exemption prayed for. Section 5(1)(iv) of the WT Act, as it stood in the relevant assessment year, was in the following terms :