COMMISSIONER OF WEALTH TAX Vs. NAURANGRAI AGARWALLA

JUDGEMENT

(1.) At the instance of the CWT, West Bengal-XIII, the Tribunal has referred the following question of law to this court under Section 27(1) of the W.T. Act:

(2.) The assessee is a partner heaving 1/4 share in the firm, M/s. Poolchand Bros. & Co. The firm owned a house property which was used by the partners for their residence. According to the firm's balance-sheet, the value of the property was Rs. 1,29,804. The WTO valued it at Rs. 3,00,000. The assessee had shown the value of his share in property at Rs. 31,201. The WTO added the difference of Rs. 43,799 to the net wealth of the assessee.

(3.) The assessee preferred an appeal before the AAC and urged that the firm was not a legal entity and that the assessee as an individual was entitled to the benefit of the exemption under Section 5(1)(iv) of the W.T. Act. In the alternative, it was urged that the firm itself was entitled to the benefit of Section 5(1)(iv). Both these contentions were rejected by the AAC and he affirmed the order of the WTO.