MOKA NARASIMHULU Vs. WEALTH TAX OFFICER

JUDGEMENT

(1.) WHAT is an "industrial undertaking " within the meaning oi Section 5(l)(xxxi) of the W T. Act and whether a groundnut oil mill, which extracts oil by crushing groundnut kernel is an " industrial undertaking " are the questions which are to be answered in this writ petition.

(2.) THE petitioner is a partner of M/s. Mahalakshmi Groundnut Oil Mills, Dharmavaram, which carries on business of crushing groundnut kernel and extracting oil therefrom. THE question now is whether his interest in the said Mahalakshmi Groundnut Oil Mills valued at Rs. 1,08,757 is exempt from wealth-tax under Section 5(1)(xxxii) read with the Explanation to Section 5(1)(xxxi). THEre is no dispute in regard to the value of the writ petitioner's interest in the said mill. THE only dispute is whether the mill is an " industrial undertaking ". However, it must be noticed that before the assessing authority this exemption was not claimed ; nor was it claimed before the appellate authority, viz., the AAC. But in a revision under Section 25 of the W.T. Act before the Commissioner this exemption was claimed and the Commissioner ruled that the undertaking is not an " industrial undertaking " within the meaning of Section 5(1)(xxxi) so that the relief postulated by Clause (xxxii) can be given to the petitioner. Hence, this writ petition by the assessee.

(3.) THERE is no dispute about the fact that the petitioner has an interest in this oil mill of the value of Rs. 1,08,757. The exemption is claimed under Clause (xxxii) of Section 5(1) in respect of this Rs. 1,08,757 alone. In this connection, we may usefully refer to Sub-section (1A) of Section 5 which says that nothing contained in Sub-section (1) shall operate to exclude from the net wealth of the assessee any assets referred to, amongst other clauses, in Clause (xxxii) to the extent the value thereof exceeds, in the aggregate, a sum of one hundred and fifty thousand rupees. Since the value of the interest is admittedly Rs. 1,08,757 only, the exemption that is now claimed does not come within the ambit of Section 5(1A).