Partner's interest in firm property qualifies for wealth-tax deduction on share in land and building under the Wealth-tax Act.

For wealth-tax purposes, partnership property is treated as property in which partners have an interest, so a partner's share in the firm's land and building is relevant in computing net wealth. The valuation rules for a partner's interest in a firm support the view that the partner has a specific interest in the firm's assets for this purpose. Accordingly, an assessee-partner was entitled to deduction under section 5(1)(iv) of the Wealth-tax Act in respect of his share in the land and building owned by the partnership firm.

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Issues: Whether an assessee-partner is entitled to deduction 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 applicable principle is that partnership property, in wealth-tax law, is treated as property in which the partners have an interest, and the partner's share is taken into account in computing net wealth. The method of valuing a partner's interest in a firm under the Wealth-tax Rules also supports the view that a partner can have a specific interest in the firm's assets for wealth-tax purposes.

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

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