1997 (2) TMI 58

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....t in computing the assessee's interest in the firm of Sri Santhanalakshmi Mills, the exemption under section 5(1)(iv) of the Wealth-tax Act should be granted to the firm in respect of a godown owned by it and the assessee's share should be arrived at on the basis of the net wealth of the firm so arrived at?" The assessee is assessed to wealth-tax for the assessment years 1974-75, 1975-76 and 1976-77. He is a partner in Sree Santhanalakshmi Mills, Pollachi. In valuing his interest in the firm, he claimed exemption under section 5(1)(iv) of the Wealth-tax Act, in respect of a godown owned by the firm. The Wealth-tax Officer rejected the assessee's claim on the ground that the godown could not be treated as a "house" within the meaning of s....

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.... the meaning of section 5(1)(iv) of the Act. The Central Board of Direct Taxes issued Circular F. No. 317/8/73-WT, dated July 9, 1973, which runs as under : "Instruction No. 568. XIX-VII/29---Exemption under section 5(1)(iv) of the Wealth-tax Act---Meaning of the word 'house'.--- Under clause (iv) of sub-section (1) of section 5 of the Wealth-tax Act one house or part of a house belonging to the assessee is exempt from wealth-tax up to a limit of Rs. one lakh. Under this clause as it stood prior to the amendment made by the Finance (No. 2) Act, 1971, with effect from April 1, 1972, the exemption was available only if the house or part of the house was exclusively used by the assessee for residential purposes. The expression excl....