9911796707
|
Home
Issues involved:
The issue involves the interpretation of section 5(1A) of the Wealth-tax Act and the Wealth-tax Rules regarding the deduction of exempted assets held by a firm in which the assessee is a partner in computing his net wealth. Summary: The assessee, a partner in three firms, claimed a deduction of Rs. 91,400 in respect of exempted assets held by one of the firms in which he was a partner. The Wealth-tax Officer (WTO) did not accept this computation and applied a different method, resulting in a lower exemption amount of Rs. 16,500. The Appellate Assistant Commissioner (AAC) upheld the assessment, stating that the exemption of assets was available only to the assessee in whose name the assets were held. However, the Wealth-tax Appellate Tribunal allowed the deduction of Rs. 91,400, stating that the exemption could be available in the hands of the assessee, irrespective of whether the assets were held in his name or as his share in the firm. The Tribunal highlighted that a firm is not an assessable entity under the Act and that the valuation of a partner's interest in a firm should be made in accordance with the provisions of the Act. The Tribunal rejected the revenue's argument that double exemption would be available to the assessee, emphasizing that the same benefit cannot be extended twice under the Act. The Tribunal concluded that the deduction of Rs. 91,400 in respect of the exempted assets held by the firm was justified in computing the assessee's net wealth. In conclusion, the Appellate Tribunal was justified in allowing the deduction of Rs. 91,400 in respect of the exempted assets held by the firm in which the assessee was a partner in computing his net wealth. The assessee was awarded costs of the reference, with a hearing fee assessed at Rs. 100.
|
