Wealth-tax exemption for partner's interest in firm property upheld, with firm-owned asset treated as belonging to the partner.

For wealth-tax exemption under section 5(1)(iv), property held by a firm was treated as belonging to the assessee-partner, so the exemption remained available even though the asset stood in the firm's name. The objection that the property was a cinema building used for commercial purposes was not examined further because the Board's circular was treated as binding and as settling that aspect. On that basis, the partner was held entitled to the exemption and the revenue's challenge failed.

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Issues: Whether a partner was entitled to exemption under section 5(1)(iv) of the Wealth-tax Act in respect of property held by the firm.

Analysis: The Tribunal followed the view that, for the purpose of section 5(1)(iv), the property held by a firm could be treated as belonging to the assessee-partner, and that the exemption was available to the partner notwithstanding that the asset stood in the name of the firm. The objection regarding the property being a cinema building and used for commercial purposes was not adjudicated, as the Board's circular was treated as binding and as settling that aspect.

Conclusion: The partner was entitled to exemption under section 5(1)(iv), and the revenue's challenge failed.

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