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TMI Blog2006 (7) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... could not be included in the total wealth of the assessee? 2. Whether the Appellate Tribunal is right in law and on facts in holding that life interest of the assessee in Palace was eligible for exemption under section 5(1)(iv)?" – held that if life interest can be treated as an asset and is includible in the net wealth of the assessee, then, the assessee would be entitled to exemption under section 5(1)(iv) - both questions are answered against the interest of the Revenue - - - - - Dated:- 19-7-2006 - Judge(s) : R. S. GARG., M. R. SHAH. JUDGMENT The judgment of the court was delivered by R. S. GARG J.-Smt. Mauna R. Bhatt, learned counsel for the Revenue. The office report shows that the assessee was served, however, nobody appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tters are that, a palace was belonging to the late Chandrasinhji D. Jadeja, who had executed a will in favour of his wife/assessee and granted her life interest in the said property. On commencement of the assessment proceedings, the Wealth-tax Officer did not grant any exemption in favour of the assessee holding that life interest was for more than six years. However, on appeal, the Commissioner of Wealth-tax (Appeals) held that since the assessee occupied the residential palace from the very date of death of her husband, life interest in the palace was already available to her on the valuation date and, therefore, the same was includible in her wealth. However, following the decision of the Madras High Court in the case of CWT v. K. Ramac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest in property, falling short of the entire interest in it. It is a well-known species of property under many systems of law, ancient and modem." This very judgment has been observed and followed by the Kerala High Court in the case of CWT v. N. Lakshmikutty Amma reported in [1989] 180 ITR 289, wherein the Division Bench of the Kerala High Court has observed that since the life interest was included in the net wealth of the assessee, the assessee was entitled to claim exemption under section 5(1)(iv) of the Wealth-tax Act as the property "belongs to the assessee" within the meaning of section 5(1)(iv) of the Act. They also referred to the judgment of the Calcutta High Court in the case of CED v. lyotirmoy Raha reported in [1978] 112 I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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