Processing of goods exemption upheld for a partner in a printing business under wealth-tax law.

A partner in a printing business was held entitled to exemption under section 5(1)(xxxii) of the Wealth-tax Act, 1957 because the firm's activity amounted to processing of goods. The Tribunal treated printing work entrusted by customers, carried out under supervision to meet customer requirements, as processing of goods. On that basis, the assessee's interest in the firm fell within the statutory exemption.

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Issues: Whether the assessee, a partner in a printing business, was entitled to exemption under section 5(1)(xxxii) of the Wealth-tax Act, 1957 on the footing that the firm was engaged in the processing of goods.

Analysis: The relevant inquiry was whether the activity carried on by the partnership firm amounted to processing of goods. The Tribunal found that printing work entrusted by customers, with supervision to satisfy customers' requirements, constituted processing of goods. On that basis, the assessee's interest in the firm fell within the statutory exemption.

Conclusion: The assessee was entitled to the exemption under section 5(1)(xxxii) of the Wealth-tax Act, 1957.

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