Partner's share in firm-owned property may qualify for wealth-tax exemption under the statutory valuation rules.

For wealth-tax purposes, a partner is treated as having an identifiable interest in the assets of the firm, and partnership property is regarded as property in which the partners have an interest. Rule 2 of the Wealth-tax Rules, 1957 supports valuation of a partner's interest in the firm, so the partner's share in land and building owned by the firm may qualify for exemption under section 5(1)(iv) of the Wealth-tax Act, 1957. The text states that the question was answered in the affirmative and the exemption was held admissible.

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Issues: Whether a partner is entitled 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 firm.

Analysis: In wealth-tax law, partnership property is treated as property of the partners, and a partner has an interest in the assets of the firm. Rule 2 of the Wealth-tax Rules, 1957 also contemplates valuation of a partner's interest in the firm, supporting the view that the partner's share in the firm's assets is identifiable for wealth-tax purposes. On that basis, the partner's share in the land and building owned by the firm could be considered for exemption under section 5(1)(iv).

Conclusion: The question was answered in the affirmative and in favour of the assessee; the exemption was held admissible.

Final Conclusion: A partner's share in firm-owned land and building was treated as eligible for exemption under the Wealth-tax Act, 1957.

Ratio Decidendi: For wealth-tax purposes, a partner has a specific interest in the assets of the firm, and that interest may qualify for exemption where the statutory conditions are satisfied.

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