1976 (12) TMI 69

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....ssee who were admitted to the benefits of the partnership. 2. In the Wealth-tax assessment of the assessee for the asst. yr. 1973-74 for which the valuation date was31st March, 1974, the question of valuation of the assessee's interest in the firm M/s Synfibre Sales Corporation arose. The WTO valued the assessee's interest therein at Rs. 1,73,636 and included the same in his net wealth which was computed at Rs. 8,71,808. 3. The assessee went in appeal to the AAC of Wealth-tax and on his behalf it was contended that he was a minor admitted only to the benefits of partnership of M/s Synfibre Sales Corporation and as such the value of his share could not be more than his capital contribution. The AAC rejected this contention on the view ....

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....tner therein. In view of this, it was conceded that S. 4(1)(b) of the WT Act and R. 2 of the WT Rules were not applicable in the assessee's case. The submission of the learned Deplt., Rep., however, was that the minor admitted to the benefits of the partnership was entitled to share in the profits and the property of the firm and his share could be valued under S. 7 of the WT Act. The Deplt., Rep. also referred to the partnership deed dt. 18th Dec., 1971 and submitted that this partnership firm took over all the existing rights and obligations and assets and liabilities of the erstwhile business and the assessee even though a minor was entitled to share therein. 6. We have carefully considered the submissions of the parties. We find that....