COMMISSIONER OF WEALTH TAX Vs. K B PRADHAN

JUDGEMENT

(1.) THESE references under S. 27(1) of the WT Act of 1957 (hereinafter referred to as "the Act"), have been made by the Tribunal, Cuttack Bench, at the instance of the Revenue and the question referred is :

(2.) THE assessee is an individual. The assessment years involved are 1973 -74 and 1974 -75, with the relevant valuation dates being 31st March, 1973, and 31st March, 1974, respectively. The assessee started construction of a house in the asst. year 1972 -73, and the same was completed in the asst. year 1975 -76. Up to the valuation date, 31st March, 1973, the assessee had invested about Rs. 59,000 inclusive of cost of land at Rs. 7,000 and up to 31st March, 1974, the investment was to the tune of Rs. 79,690. Assessee claimed exemption in respect of the house under S. 5(1)(iv) of the Act, but the claim for exemption was rejected by the WTO on the footing that the house was incomplete and the work being in progress it could not be considered to be a "house" within the meaning of S. 5(1)(iv) of the Act so as to entitle its value to be deducted as exemption under the relevant provision.

(3.) SEC . 5 of the Act provides for exemption in respect of certain assets. The relevant provision reads thus :