2003 (9) TMI 68

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... counsel for the parties. This is a wealth-tax reference under section 27(1) of the Wealth-tax Act, 1957, in which the following question has been referred to us for our opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee is entitled to exemption under section 5(1)(iv) of the Wealth-tax Act in respect of cinema buil....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ll not be included in the net wealth of the assessee: "One house or part of a house belonging to the assessee." The word "house" has not been defined in the Wealth-tax Act, nor in the General Clauses Act. However, the word "building" has been used in section 5(1)(iii) of the Wealth-tax Act, and in section 5(1)(i) the word "property" has been used. Thus the Wealth-tax Act has used the words "....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....held that a cinema hall is a house. We respectfully disagree with the view taken by the Rajasthan High Court. The Rajasthan High Court in that decision has held that for getting exemption under section 5(1)(iv) it is not necessary that the house be exclusively used for residential purposes. We agree with this reasoning of the Rajasthan High Court that even if a house is used for commercial purpose....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Royal Bank of Scotland [1881] 7 QB 136, 140, it was held that a house means" a permanent building in which the tenant, or the owner and his family, dwells or lives." The same interpretation has been given by our courts, e.g., in Shiv Narain Chaudhari v. CWT [1977] 108 ITR 104 (All) ; CWT v. K. B. Pradhan [1981] 130 ITR 393 (Orissa), etc. It may be mentioned that from the assessment years 1957-5....