COMMISSIONER OF WEALTH TAX Vs. RAMAN KANT

JUDGEMENT

(1.) THE following question arising from the two assessees' wealth-tax cases for the asst. yr. 1981-82 has been referred by the Tribunal at the instance of the Department under S. 27(1) of the WT Act, 1957 (for short, 'the Act') :

(2.) THE assessees were partners in a partnership firm. They claimed exemption for their shares in the property of the firm under S. 5(1)(iv) of the Act. The WTO declined to allow exemption, holding that the property belonged to the partnership firm whereas the exemption was available to a house or part of a house belonging to the assessee.

(3.) A Division Bench of this Court had an occasion to examine a similar question in CWT vs. Vipin Kumar (1993) 111 CTR (P&H) 52 : (1993) 203 ITR 941 (P&H). After examining the question whether the assessee was entitled to the exemption in respect of the property belonging to the firm in which he was a partner, it was observed at page 945 as under :