Partnership wealth exemption for agricultural land extends to each partner's share; typographical error in section reference corrected.

Exemption for agricultural land in a partnership context was held to apply to each partner only to the extent of his share in the firm's net wealth. The court treated the reference to section 5(1A) as a typographical error, since the claim properly arose under section 5(1)(iva) of the Wealth-tax Act, 1957. Applying the earlier principle governing partners' exemption in partnership wealth, the same rule was extended to the agricultural land exemption. The partner was therefore entitled to exemption proportionate to his share, and the question was answered against the Department.

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Issues: Whether the exemption in respect of agricultural lands owned by a firm is available in the hands of each partner to the extent of his share in the partnership wealth, and whether the reference to section 5(1A) in the question referred was a typographical mistake.

Analysis: The question referred contained an obvious typographical error, because the assessee's claim arose under section 5(1)(iva) of the Wealth-tax Act, 1957. The Court held that the earlier decision on exemption available to partners in respect of their respective shares in the net wealth of a partnership firm governed the issue, and that the same principle applied to exemption claimed under section 5(1)(iva). The assessee was therefore entitled to exemption to the extent of his share in the net wealth of the partnership firm.

Conclusion: The exemption was allowable in the hands of the partner to the extent of his share, and the question was answered in the negative, against the Department.

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