Self-occupied residential house relief under wealth tax applies even without physical occupation if the property remains ready for residence.

Section 7(4) of the Wealth-tax Act was construed pragmatically for a house property claimed as a residential self-occupied asset. Physical occupation by the assessee was not treated as essential where the house was maintained for his residence, remained ready for residential use, and was neither let out nor used to generate income. On that basis, the statutory condition of exclusive residential use throughout the relevant 12-month period was held satisfied, and the valuation adopted by the appellate authority was upheld.

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Issues: Whether the assessee was entitled to the benefit of section 7(4) of the Wealth-tax Act in respect of the house property, though he was a non-resident and had not physically occupied the house during the relevant period.

Analysis: The expression "exclusively used by him for residential purposes throughout the period of 12 months immediately preceding the valuation date" was construed pragmatically and not in a pedantic sense. Physical occupation by the assessee was held not to be essential if the house was maintained for his residence and was not let out or used to earn income. The house remaining ready for residential use by the assessee was treated as sufficient compliance with the statutory condition.

Conclusion: Section 7(4) of the Wealth-tax Act was held applicable, and the valuation adopted by the appellate authority was upheld.

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