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Issues:
- Interpretation of deduction under section 5(1)(iv) of the Wealth Tax Act, 1957 in the context of property ownership and registration. Analysis: The appeal filed by the Revenue questioned the direction given by the ld. AAC to allow deductions under section 5(1)(iv) of the Wealth Tax Act for a flat not registered in the name of the assessee. The Departmental Representative argued that since the assessee was not the registered owner, the property did not belong to him, hence the exemption should not have been allowed. On the other hand, the authorized counsel of the assessee contended that if the property was included in the net wealth by the WTO and treated as belonging to the assessee, the deduction under section 5(1)(iv) should be allowed. The Tribunal had previously held that the term "belonging" could signify an interest less than ownership, allowing deductions even for properties without registered sale deeds. However, a recent Supreme Court decision in Nawab Sir Osman Ali Khan vs. CWT clarified that legal ownership remains with the vendor until a registered sale deed is executed, even if possession is handed over to the purchaser. Following this precedent, the Tribunal concluded that the assessee, who had not yet registered the property in its name, could not be considered the legal owner. The matter was remanded to the WTO for reassessment in line with the Supreme Court's ruling, vacating the AAC's order and allowing the Revenue's appeal for statistical purposes.
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