COMMISSIONER OF WEALTH TAX Vs. VIMLABAI KANTILAL PORWAL

JUDGEMENT

(1.) THIS is a reference by the Income-tax Appellate Tribunal, Indore, under Section 27(1) of the W.T. Act, 1957.

(2.) FACTS as stated by the Tribunal are as under : Assessee, Vimlabai, had purchased a house jointly with two ladies, namely, Smt. Chandanbai and Smt. Chandrakantabai. Each purchaser had 1/3rd share in the said house. In connection with the wealth-tax assessment of the assessee, Smt. Vimlabai, for assessment yearFs 1968-69 to 1972-73, the WTO assessed the tax by first determining the total value of the house and thereafter giving statutory deduction admissible under Section 5(1)(iv) of the W.T. Act. From the balance so arrived at, he took the assessee's 1/3rd share for the purposes of assessment to wealth-tax in respect of the assessment years 1968-69 to 1972-73. Assessee claimed before the WTO that the full exemption under Section 5(1)(iv) of the Act should be allowed, on the assessee's 1/3rd share in the total value of the property. This claim of the assessee was rejected by the WTO.

(3.) AT the instance of the Department, the following question of law has been referred to us for opinion :