House-property exemption under wealth tax applies when the assessee owns only one house and valuation proviso is satisfied.

The amended exemption for one house or part of a house under section 5(1)(iv) of the Wealth-tax Act, 1957 applied where the assessee owned only a single house property. The property had come to belong solely to the assessee after the co-owner transferred her share by registered gift deed, and the statutory proviso relating to valuation did not prevent the exemption on these facts. The assessee was therefore entitled to the house-property exemption in respect of her sole residential asset.

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Issues: Whether the assessee was entitled to exemption under section 5(1)(iv) of the Wealth-tax Act, 1957 in respect of her sole house property.

Analysis: The property belonged solely to the assessee, the co-owner having transferred her share by registered gift deed. The applicable provision was the amended section 5(1)(iv) of the Wealth-tax Act, 1957, which exempts one house or part of a house belonging to the assessee, subject to the proviso relating to valuation. As the assessee owned only one house, the statutory exemption was attracted.

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

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