Reassessment permits new exemption claims, and a partner may seek wealth-tax exemption for a firm-owned flat.

A valid reassessment under the Wealth-tax Act opens the assessment afresh, allowing the assessee to claim lawful exemptions and reliefs even if they were not claimed in the original assessment. On that basis, exemption under section 5(1)(iv) was available in the reassessment proceedings. The document also notes that, on the facts found and in light of binding precedent, a partner could claim the exemption in her individual wealth-tax assessment in respect of a flat owned by the firm, and the Tribunal was justified in applying section 5(1)(iv).

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Issues: Whether the assessee was entitled to exemption under section 5(1)(iv) of the Wealth-tax Act, 1957, in reassessment proceedings, despite not having claimed the exemption in the original assessment, and whether a partner could claim such exemption in her individual assessment in respect of a flat owned by the firm.

Analysis: The assessment had been validly reopened under section 17(1)(b) of the Wealth-tax Act, 1957, and once reassessment was initiated, the entire assessment became open for consideration. In such proceedings, the assessee was entitled to claim all lawful exemptions and s available under the Act, even if they had not been claimed earlier in the original assessment. The question whether a partner could claim exemption in respect of the firm-owned flat was already covered by binding precedent, and the Tribunal was justified in applying section 5(1)(iv) on the facts found.

Conclusion: The assessee was entitled to exemption under section 5(1)(iv) of the Wealth-tax Act, 1957, in the reassessment proceedings, and the answer to the referred question was in the affirmative and in favour of the assessee.

Ratio Decidendi: Once a valid reassessment is opened, the assessment is at large and the assessee may claim any exemption or relief otherwise allowable under the Act, even if it was not claimed in the original assessment.

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