1987 (8) TMI 10

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....titled to the benefit of section 5(1)(xxxii) of the Wealth-tax Act in respect of the assessee's interest in the assets of Venugopal Rice Mills which has been leased out ?" The assessee filed his wealth-tax return for the assessment year 1974-75 declaring his net wealth which included interest in a partnership firm known as Venugopal Rice Mills. The partnership interest was assessed at Rs. 9,029 and exemption was claimed in respect of the same under section 5(1)(xxxii) of the Act. The Wealth-tax Officer rejected the claim for exemption on the ground that the firm was defunct and no business was carried on during the previous year relevant to the assessment year 1974-75. The matter was carried in appeal to the Appellate Assistant Commissio....

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.... in the net wealth of the assessee ... (xxxii) the value, as determined in the prescribed manner of the interest of the assessee in the assets (not being any land or building or any rights in any land or building 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..." The expression "industrial undertaking" occurring in clause (xxxii) is defined in the Explanation occurring after clause (xxxi). The term "industrial undertaking", according to the Explanation, means an undertaking engaged in the business of generation or distribution of electricity or any other form....