COMMISSIONER OF WEALTH TAX Vs. TARACHAND AGARWALLA

JUDGEMENT

(1.) IN compliance with the direction given by this court in Civil Rules Nos. 40(M) and 41(M) of 1979 relating to the wealth -tax assessment of Tarachand Agarwalla for the assessment years 1972 -73 and 1973 -74, the Tribunal drew up a statement of case for referring the following question as framed by this court:

(2.) THE facts of the case, in brief, are thus. The assessee was a partner in a partnership firm. In computing the net wealth of the assessee, the Wealth -tax Officer included the value of the assessee's interest in the firm of which he was a partner under Rule 2 of the Wealth -tax Rules, 1957. The firm owned certain immovable properties. However, the value of the assessee's interest in the firm was included as movable properties in the assessment of the assessee. On the appeal filed by the assessee, it was claimed that exemption under Section 5(1)(iv) should have been allowed in respect of the proportionate share of the assessee in the firm's house property. The Appellate Assistant Commissioner accepted the contention and directed the Wealth -tax Officer to allow exemption, as provided under Section 5(1)(iv) of the Wealth -tax Act. On appeal, the Appellate Tribunal dismissed the appeal by confirming the order of the Appellate Assistant Commissioner.

(3.) THE question then was whether the interest of a partner in partnership assets comprising movable as well as immovable property should be treated as movable propery for the purpose of Section 5(1)(iv) of the Wealth -tax Act.