COMMISSIONER OF WEALTH-TAX Vs. DEEPAK DUMRA

JUDGEMENT

(1.) THE following common question arising from the three assessees' wealth-tax cases for the assessment year 1978-79 has been referred by the Income-tax Appellate Tribunal (the "tribunal"), at the instance of the Department under Section 27 (1) of the Wealth-tax Act, 1957 (for short, "the Act") :

(2.) THE assesses were partners in a partnership firm. They claimed exemption for their shares in the property of the firm under Section 5 (1) (iv) of the Act. The Wealth-tax Officer declined to allow exemption, holding that 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 v. Vipin Kumar [1993] 203 ITR 941. 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 :