Agricultural land exemption for a partner's share was allowed where conflicting views favoured the assessee.

Exemption under section 5(1)(iva) of the Wealth-tax Act was considered for an assessee's share in agricultural lands owned by a firm in which he was a partner. The lands were part of the assets of a firm engaged in agricultural activities, and there was conflicting judicial opinion on whether a partner could claim the exemption for his proportionate interest. Applying the interpretation favourable to the assessee where High Court views diverged, the exemption was held admissible to the extent of the value of the assessee's share in the agricultural lands.

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Issues: Whether the assessee was entitled to exemption under section 5(1)(iva) of the Wealth-tax Act, 1957 in respect of the value of agricultural lands owned by the firm in which he was a partner.

Analysis: The agricultural lands formed part of the assets of the firm engaged in agricultural activities. There was a conflict of judicial opinion on whether a partner could claim exemption for his share in such lands. In the presence of conflicting High Court views, the principle was applied that the interpretation favourable to the assessee should be preferred.

Conclusion: The exemption was held admissible to the assessee to the extent of the value of his share in the agricultural lands.

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