1993 (1) TMI 34

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....tner was an industrial undertaking within the meaning of section 5(1)(xxxii) of the Wealth-tax Act, 1957 ?" The assessee is a partner in a firm, Messrs. Agiwal and Company. The said firm acts as a civil contractor engaged in construction of roads, buildings and drains. The assessee claimed exemption under section 5(1)(xxxii) of the Act of the value of interest in the assets of the firm on the ground that the entire assets of the firm formed part of an industrial undertaking belonging to the firm. The value of the assessee's interest in the assets of the firm was Rs. 1,40,000. The Wealth-tax Officer being not satisfied with the claim, refused to grant exemption. The assessee's appeal to the Appellate Assistant Commissioner failed. But on ....

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....ng or any asset referred to in any other clause of this sub-section) forming part of an industrial undertaking belonging to a firm or an association of persons of which the assessee is a partner, or, as the case may be, a member ; " From clause (xxxii) quoted above, it is clear that an assessee being a partner in the firm can successfully claim exemption under the said clause only if the assets of the firm form part of an industrial undertaking belonging to the firm. "Industrial undertaking" as defined under the Explanation quoted above, means an undertaking engaged in the business of (i) generation or distribution of electricity or any other form of power, or (ii) in the construction of ships, or (iii) in the manufacture or processing o....