COMMISSIONER OF WEALTH TAX Vs. HIRO J. NAGPAL

JUDGEMENT

(1.) THESE references have been made at the instance of the Revenue in six assessment cases for the years ranging from 1973 -74 to 1978 -79. The factual and legal issues involved are identical, the same are being decided by this common order.

(2.) THE assessee -respondent filed WT returns. A notice under Section 17 of the WT Act was issued and served upon the assessee for the valuation of the Hotel Nagpal in question, against book value. The property known as Nagpal Hotel was referred to the Valuation Cell of the Department and the Valuation Officer, vide his order dt. 20th Sept., 1977, valued the interest of the assessee in the property. The WTO issued demand under Section 16(3)/17 of the WT Act vide his order dt. 26th March, 1980. The order of the WTO was challenged by way of appeal before the AAC of wealth -tax who upheld the order of the WTO. Against the appellate order, further appeal was preferred before the Tribunal. The Tribunal granted the benefit of exemption under Section 5(1)(iv) of the WT Act. Under such circumstances, following reference has been made seeking opinion of this Court: Whether on the facts and in the circumstances of the case the Tribunal was justified in directing the WTO to grant exemption under Section 5(1)(iv) of the WT Act, 1957 to the assessee?

(3.) IT has been brought to our notice that the relevant Section 5(1)(iv), as it existed originally, was amended on 1st April, 1972 taking away the words 'exclusively used for dwelling purposes' and the relevant position of the law after the amendment for our purpose reads as under: Section 5. Exemption in respect of certain assets. - -(1) Subject to the provisions of Sub -section (1A), wealth -tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee.... (iv) one house or part of a house belonging to the assessee.