House exemption under wealth-tax includes shops, and tenant business use does not defeat the exemption.

The amended exemption for one house or part of a house under section 5(1)(iv) of the Wealth-tax Act, 1957 was interpreted broadly, and the provision no longer required exclusive residential use after deletion of that condition. On that basis, the expression "house" was held wide enough to cover shops, and their use by tenants for business purposes did not prevent exemption. The half share in the shops therefore qualified for exemption and the value of the shops was not includible in net wealth.

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Issues: Whether the assessee was entitled to exemption under section 5(1)(iv) of the Wealth-tax Act, 1957 in respect of half share in shops, and whether such shops could be treated as a house despite being used for business purposes by tenants.

Analysis: The amended provision exempted one house or part of a house belonging to the assessee from inclusion in net wealth and, after deletion of the words requiring exclusive residential use, no longer insisted that the house be used for residential purposes. The expression "house" was held broad enough to include shops, and the fact that they were let out for business use did not defeat the exemption.

Conclusion: The assessee was entitled to exemption under section 5(1)(iv) of the Wealth-tax Act, 1957, and the value of the shops was not includible in net wealth.

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