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Issues: (i) Whether exemption under section 5(1)(iv) of the Wealth-tax Act, 1957 is available in respect of a partner's share in a building owned by a firm. (ii) Whether a commercial building used as a hotel can be treated as a "house" for the purpose of the exemption.
Issue (i): Whether exemption under section 5(1)(iv) of the Wealth-tax Act, 1957 is available in respect of a partner's share in a building owned by a firm.
Analysis: The exemption was considered in the light of the settled position that a partner can claim the benefit in respect of property owned by the firm, and that the beneficial ownership issue does not prevent the allowance of the exemption where the statutory requirements are otherwise satisfied.
Conclusion: The exemption is available to the partner even though the building stands in the name of the firm.
Issue (ii): Whether a commercial building used as a hotel can be treated as a "house" for the purpose of the exemption.
Analysis: The expression "house" was held not to be confined to a residential structure. A building used as a hotel, though commercial in character, falls within the wider meaning of "house" adopted for section 5(1)(iv) of the Wealth-tax Act, 1957.
Conclusion: A hotel building can be treated as a house for the purpose of the exemption.
Final Conclusion: The Tribunal's view was consistent with the law and the reference petitions failed, leaving the exemption claim intact.
Ratio Decidendi: For the purpose of section 5(1)(iv) of the Wealth-tax Act, 1957, the term "house" is not restricted to residential buildings, and a partner may claim the exemption in respect of a building owned by the firm.
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