Life interest in a house property qualifies for wealth-tax exemption under the statutory house-property exemption.

A life interest in immovable property is treated as an asset under the Wealth-tax Act, and the assessee's interest in the house property was regarded as an interest in the house itself for the purpose of the expression "belonging to" under section 5(1)(iv). On that basis, the property formed part of the assessee's net wealth, and the statutory exemption was available. The assessee with only a life interest in the building was therefore entitled to exemption under section 5(1)(iv) of the Wealth-tax Act, 1957.

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Issues: Whether an assessee having only a life interest in a building is entitled to exemption under section 5(1)(iv) of the Wealth-tax Act, 1957.

Analysis: A life interest in immovable property is an asset within the meaning of the Wealth-tax Act. The interest of the assessee in the house property was treated as an interest in the house itself, bringing it within the scope of the expression "belonging to" for the purpose of section 5(1)(iv). The reasoning accepted that once the life interest formed part of the assessee's net wealth, the statutory exemption could be claimed in respect of that property.

Conclusion: The assessee having only a life interest in the building is entitled to exemption under section 5(1)(iv) of the Wealth-tax Act, 1957, and the question was answered in the affirmative.

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