House property exemption depends on residential usability on valuation date, not actual occupation, under wealth-tax law.

Exemption under section 5(1)(iv) of the Wealth-tax Act, 1957 depends on whether the house property is capable of being used as a residence on the valuation date, not on actual occupation. Where construction was substantially complete, the ground floor was ready for occupation, and the remaining work on the first floor was only finishing touches, the property was treated as a house fit for use. Actual occupation after the valuation date was therefore immaterial, and the assessee was entitled to the exemption.

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Issues: Whether exemption under section 5(1)(iv) of the Wealth-tax Act, 1957 was available in respect of a house property that had been completed and was ready for occupation, though not actually occupied on the valuation date.

Analysis: The exemption turned on whether the house could be used as a house on the valuation date, not on whether it had in fact been occupied. The construction had been substantially completed, the ground floor was ready for occupation, the first floor was also complete except for finishing touches, and the property was capable of being used as a residence. Actual occupation after the valuation date was therefore immaterial for the exemption claim.

Conclusion: The assessee was entitled to exemption under section 5(1)(iv) of the Wealth-tax Act, 1957.

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