2006 (7) TMI 154

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.... in holding that the Bombay property did not belong to the assessee till the estate is administered and the asset is allocated, handed over to the beneficiary under the will and hence the value of the immovable property could not be included in the total wealth of the assessee? 2. Whether the Appellate Tribunal is right in law and on facts in holding that life interest of the assessee in Hajoor Palace was eligible for exemption under section 5(1)(iv)?" W. T.R. No. 119/95 : "1. Whether, the Appellate Tribunal is right in law and on facts in holding that the Bombay property did not belong to the assessee till the estate handed over to the beneficiary under the will and hence the value of immovable property could not be included in th....

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....ned Commissioner of Wealth-tax (Appeals), was fully justified. They also observed that from the will of the late Shri Chandrasinhji Jadeja, it was clear that the palace belonged to him in the capacity of "Ruler of the State" and he had bequeathed the same to his wife with a specific observation that "she shall have a right to live in the old and new Hajoor palace". The Tribunal further observed that the case of the assessee is squarely covered by the ratio of the Madras High Court in the case of CWT v. K. Ramachandra Chettiar reported in [1983] 141 ITR 771. The Tribunal accordingly held that the action of the learned Commissioner of Wealth-tax (Appeals) was in accordance with law. In the matter of CWT v. K. Ramachandra Chettiar reported ....

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....in the wealth tax assessment if it belongs to the assessee. If a life interest is treated as such an asset belonging to the assessee and included in the assessment, there is no reason why such asset will not be entitled to exemption provided in respect of any such asset. The three High Courts, though differing a little in their reasoning, came to the very same conclusion that if life interest can be treated as an asset and is includible in the net wealth of the assessee, then, the assessee would be entitled to exemption under section 5(1)(iv) of the Wealth-tax Act. After hearing the learned counsel for the Revenue, we are unable to take a different view. The Tribunal was absolutely justified in confirming the order passed by the learn....