1989 (2) TMI 103

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..... T. A. Nos. 137 to 141/Coch. of 1980 relating to the above assessment years 1967-68 to 1971-72. The question of law runs as follows : "Whether, on the facts and in the circumstances of the case, the assessee is entitled to claim exemption in respect of the residential house belonging to the minor and included as belonging to the assessee ?" The Income-tax Officer, as also the Appellate Assistant Commissioner, included in the net wealth of the assessee the value of the residential building standing in the name of the assessee's minor son. This was so done under section 4(1)(a)(ii) of the Wealth-tax Act. The assessee claimed exemption under section 5(1)(iv) for the residential building. Section 4(l)(a)(ii) which enabled the Revenue to incl....

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....of the said asset under section 5(1)(iv) of the Act. The Wealth-tax Officer, as well as the Appellate Assistant Commissioner, held that in order to claim the exemption under section 5(1)(iv) of the Act, the house must belong to the assessee (respondent). It is not so in this case. So, the exemption cannot be allowed. However, the Appellate Tribunal upheld the claim of the assessee. The Appellate Tribunal referred to the decisions of the Madras and Karnataka High Courts and held that the property included in the net wealth of the assessee by the fiction created by section 4(1)(a) of the Act has to be assumed even for the purpose of section 5(1)(iv) of the Act as belonging to the assessee and the exemption should be allowed in the hands of th....