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of <h1>Definition of 'house' under Wealth Tax Act clarified: whole building with multiple units treated as one.</h1> <h3>FOURTH WEALTH TAX OFFICER. Versus MV PATEL.</h3> FOURTH WEALTH TAX OFFICER. Versus MV PATEL. - TTJ 028, 209, Issues:Interpretation of the term 'house' in relation to Wealth Tax Act for a building with multiple residential units.Detailed Analysis:Issue 1: Interpretation of the term 'house' in relation to Wealth Tax ActThe judgment revolves around the interpretation of the term 'house' in section 5(1)(iv) of the Wealth Tax Act concerning a building with multiple residential units. The primary question is whether a building with several residential units should be considered one house for the purpose of claiming maximum relief under the Act.Issue 2: Exemption under Section 5(1)(iv) for a co-owned propertyThe case involves a co-owned property named 'Bhaveshnagar property' consisting of several independent residential flats. The Wealth Tax Officer (WTO) initially allowed full exemption under s. 5(1)(iv) for the property. However, after a rectification proceeding under s. 35, the exemption was reduced based on the argument that each residential unit should be considered a separate house, limiting the exemption to Rs. 10,000 per unit.Issue 3: Applicability of judicial precedentsThe appellant relied on judicial precedents, including the decision of the Allahabad High Court in Shivnarain Chaudhari vs. CWT, to support their claim for full exemption for the entire building. The argument was based on the unity of structure in the building, despite different tenants occupying separate residential units.Issue 4: Interpretation of the term 'house' based on legal principlesThe judgment delves into legal principles and precedents to interpret the term 'house' in the Wealth Tax Act. References to English legal decisions, such as Grant vs. Langston and Benabo vs. Wood Green Corporation, are made to understand the evolving meaning of the term 'house' in modern construction practices.Issue 5: Conclusion and dismissal of appealsAfter considering the arguments presented by both parties and analyzing the relevant legal principles, the appellate tribunal dismissed the appeals. The tribunal concluded that the term 'house' should not be restricted to a single residential unit and encompasses the entire building, leading to the sustenance of the appellate order canceling the rectification under s. 35.The judgment provides a comprehensive analysis of the term 'house' in the context of the Wealth Tax Act, emphasizing the unity of structure in a building with multiple residential units. By referencing legal precedents and principles, the tribunal elucidates the interpretation of the term and ultimately dismisses the appeals, affirming the original exemption allowed for the co-owned property.
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