COMMISSIONER OF WEALTH TAX Vs. SUBIMAL SEN

JUDGEMENT

(1.) BY this common judgment and order, we propose to dispose of all the three references as the questions of law involved are same. These references have been made under Section 27(3) of the Wealth -tax Act, 1957, on a direction issued by this court.

(2.) BEFORE we state the questions of law, it may be convenient to refer to the facts of all the three cases.

(3.) IN Wealth -tax Reference No. 20 of 1985, the assessee was a partner of the firm, M/s. Tinsukia Pharmacy, Tinsukia. The firm had a fixed deposit of Rs. 74,405 and the assessee claimed that his share in the said deposit was Rs. 24,801. While determining' the value of interest in the firm, the assessee had deducted the above sum of Rs. 24,801 out of the value of interest in the firm calculated by him. The assessee claimed that he is entitled for deduction under Section 5(1)(xxvi) of the Wealth -tax Act, 1957, in short 'the Act'. Section 5(1) of the Act contemplates exemption in respect of an assessee and further Rule 2(1) lays down provisions for valuation of interest in a partnership or an association of persons. The claim of the assessee was rejected by the Wealth -tax Officer. The appeal was allowed by the lower appellate authority and the second appeal by the learned Tribunal.