AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2003 (4) TMI 12
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....divided family is entitled to benefit of section 7(4) of the Act in respect of a property known as 'Dhairya Prasad'?" The assessee is a Hindu undivided family and the relevant assessment years were 1979-80 and 1981-82. The dispute centres around the valuation of building known as "Dhairya Prasad", which belonged to the assessee-Hindu undivided family. The case of the assessee was that the conditions mentioned in section 7(4) were fulfilled and, therefore, the benefit of this provision should be allowed to the assessee in respect of the said house. The Wealth-tax Officer, however, negatived the claim on the ground that at no time in the past, the assessee had claimed this property to be self-occupied and that even though exemption was cla....
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....to the benefits of section 7(4). The Wealth-tax Officer was, therefore, directed to give the said benefit to the assessee in respect of the house known as "Dhairya Prasad", used for self-occupation by substituting the value determined by the Valuation Officer by the fair market value as on January 1,1971, in order to give consequential reliefs to the assessee in the relevant years. The Wealth-tax Officer challenged the decision of the Commissioner of Wealth-tax (Appeals), before the Tribunal and the Tribunal, upholding the decision of the Commissioner of Wealth-tax (Appeals) held that, the benefit of section 7(4) was also available to an Hindu undivided family provided other requirements of section 7(4) were fulfilled. It was held that, ....
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....he Tribunal it was not contended that the assessee had not used the property as a residence during the period of twelve months immediately preceding the valuation dates involved in the three appeals before the Tribunal, from which this reference has arisen. Section 5 of the said Act enumerates exemptions in respect of certain assets and, inter alia, provides that, wealth-tax shall not be payable by an assessee in respect of the assets mentioned therein and such assets shall not be included in the net wealth of the assessee. Clause (ivb) of section 5(1) (as in force at the relevant time), exempted "one building or one group of buildings owned by a cultivator of, or receiver of rent or revenue out of, agricultural land" subject to the prov....
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....ation date relevant to the assessment year commencing on the first date of April,1971, whichever valuation date is later, provided that where more than one house belonging to the assessee is exclusively used by him for residential purposes, the provisions of this sub-section shall apply only in respect of one such houses which the assessee may, at his option, specify in this behalf in the return of net wealth. As noted above, the assessee had specified his option under section 7(4) in respect of its house known as "Dhairya Prasad". It will be seen from the provisions of section 5 and section 7 that they operate in different fields. While section 5 deals with exemption in respect of the assets mentioned therein from the payment of wealth-....
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....s, the assessee had claimed an exemption in respect thereof under section 5(1)(ivb), was hardly relevant and such exemptions availed of in the past in respect of that house did not preclude the assessee from exercising its option under the proviso to sub-section (4) of section 7 for the purpose of claiming the benefit of sub-section (4) as on the valuation date envisaged therein. The Tribunal was, therefore, right in holding that the assessee-Hindu undivided family was not estopped from claiming the benefit of the provisions of sub-section (4) of section 7 of the Act and we are unable to accede to the contrary contention canvassed on behalf of the Revenue. The contention of learned senior counsel for the Revenue that the Hindu undivided ....