COMMISSIONER OF WEALTH TAX Vs. SUDHA DEVI KHAITAN

JUDGEMENT

(1.) THESE tax cases arise out of references made by the Income-tax Appellate Tribunal under Section 27(1) of the Wealth-tax Act, 1957. THESE two tax cases pertain to the assessment years 1975-76 and 1976-77. The common question of law involved in these cases is as follows :

(2.) THE facts in short are thus. THE assessee is an individual. THE relevant valuation date falls on March 31, of each year. THE assessee invested a sum of Rs. 1,54,920 and Rs. 1,72,708 as capital in the firm and claimed exemption under Section 5(1)(xxxii) of the Wealth-tax Act, 1957, on the ground that the firm of which the assessee was a partner was an industrial undertaking. THE Wealth-tax Officer, however, partly negatived the claim on the ground that the interest of the assessee in the assets of the firm forming part of an industrial undertaking will not include the value of any land or building or any right or interest in any land or building belonging to the firm. THE assessee preferred an appeal to the Appellate Assistant Commissioner who was pleased to allow the claim of the assessee. Aggrieved by this order, the Wealth-tax Officer appealed to the Appellate Tribunal but the Tribunal, following its earlier order, dismissed the Departmental appeal, thus upholding the claim of the assessee.

(3.) I agree.