Wealth-tax exemption for Hindu undivided family denied where Indian-origin explanation did not extend eligibility to an HUF.

The exemption under section 5(1)(xxxiii) of the Wealth-tax Act, 1957 was confined to the statutory class of "person" covered by the provision, and the explanation on Indian origin did not extend that relief to a Hindu undivided family. The Court held that the place-of-birth criterion could not be applied to an HUF, and the family's treatment as resident but not ordinarily resident in income-tax proceedings did not by itself make it eligible for wealth-tax exemption. The claim was therefore rejected and the issue was answered against the assessee HUF and in favour of the Revenue.

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Issues: Whether a Hindu undivided family could claim exemption from wealth-tax under section 5(1)(xxxiii) of the Wealth-tax Act, 1957 on the basis of residential status and Indian origin.

Analysis: The issue was controlled by the interpretation of the expression "person" in section 5(1)(xxxiii) and the explanation dealing with Indian origin. The applicable reasoning was that the place of birth criterion cannot be extended to a Hindu undivided family, and the statutory explanation does not bring a Hindu undivided family within the class of persons eligible for the exemption merely because the family status was treated as resident but not ordinarily resident in income-tax proceedings.

Conclusion: The claim for exemption was not available to the assessee Hindu undivided family, and the question was answered against the assessee and in favour of the Revenue.

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