Partner's share in firm property can qualify for wealth-tax exemption as an identifiable interest in assets.

A partner's share in land and building owned by a partnership firm was treated as an identifiable interest in firm assets for wealth-tax valuation. The firm's property was regarded in law as property in which the partners have an interest, and rule 2 of the Wealth-tax Rules supported computation of that interest. On that basis, the partner's share in the firm-owned land and building qualified as an interest in property eligible for exemption under section 5(1)(iv) of the Wealth-tax Act, 1957.

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Issues: Whether a partner is entitled, for wealth-tax purposes, to exemption under section 5(1)(iv) of the Wealth-tax Act, 1957 in respect of his share in land and building owned by the partnership firm.

Analysis: The property of a firm is treated, in law, as property of the partners, and a partner has an interest in the partnership assets. In wealth-tax proceedings, that interest is capable of being identified for valuation, and rule 2 of the Wealth-tax Rules supports the computation of a partner's interest in firm assets. On that basis, the partner's share in the land and building owned by the firm could be regarded as an interest in property eligible for the statutory exemption.

Conclusion: The exemption under section 5(1)(iv) was available to the assessee in respect of his share in the land and building owned by the firm.

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