2003 (2) TMI 29

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..... a company. Thus, wealth-tax cannot be levied on a firm under the Wealth-tax Act. - Since the house in question, which is said to belong to the firm, in reality belongs to the partners and since the assessee is one of the co-owners of the house property, in our opinion, the value of his share in the house property has to be deducted from the net wealth for the purposes of wealth-tax. - We, therefo .....

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..... t proceedings, the assessee claimed deduction under section 5(1)(iv) of the Wealth-tax Act in respect of the house property owned by the firm. The Wealth-tax Officer rejected the assessee's claim but the appeal was allowed by the Appellate Assistant Commissioner and his order was upheld in further appeal by the Tribunal. In our opinion, there is no merit in the submission of learned counsel for .....

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..... belongs to the partners. Similarly, when we say that the firm has acquired or sold some property then we really mean in law that its partners have done so. This is because a firm is not a distinct legal entity at all, both under the general law as well as under the Wealth-tax Act, although it is a legal entity under the Income-tax Act. It has been mentioned in section 3 of the Wealth-tax Act, wh .....

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