COMMISSIONER OF WEALTH TAX Vs. SATI MULCHANDANI

JUDGEMENT

(1.) In this reference under Section 27(1) of the Wealth-tax Act, 1957, for the assessment years 1968-69 and 1969-70, the following question of law has been referred to this court;

(2.) The facts shortly stated are that in the original assessments for the assessment years 1968-69 and 1969-70, the share of the assessee in a firm, namely, Mulchandani Radio and Appliances, where she was a partner, had been included. Subsequently, the Income-tax Officer came to know that one of the properties which the said firm was having is a flat which was valued at a lower figure, according to the Wealth-tax Officer as per the assessment of another partner. Consequently, the assessment of the assessee was reopened under Section 17(1)(b) of the Act in order to enhance the share of the assessee in the said partnership firm by taking a higher valuation of the Bombay flat. The market value of the flat was determined at Rs. 1,70,000 and an amount of Rs. 23,495 having been already taken into account in the earlier assessment, the difference was taken (assessee's share at 1/3rd).

(3.) The assessee filed an appeal claiming exemption under Section 5(1)(iv) in respect of the house property. The Appellate Assistant Commissioner rejected the claim on the ground that the assessee did not claim the exemption before the Wealth-tax Officer and that the assessee is otherwise not entitled to make a claim in the reassessment proceedings.