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TMI Blog2001 (12) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... tion No.1 is in the negative, whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee would be entitled to claim exemption under section 5(1)(iii) of the Wealth-tax Act, 1957, in respect of the New Palace at Morvi?" The assessment years are 1975-76, 1976-77 and 1977-78 and the relevant valuation dates are March 31, 1975, March 31, 1976 and March 31, 1977, respectively. The assessee is the executor of the estate of the late Shri Mahendrasinhji, the Ruler of Morvi. She filed a return of wealth and in Part IV pointed out that the New Palace at Morvi was exempt under section 5(1)(iii) of the Act. The Wealth-tax Officer accepted the assessee's claim. The Commissioner of Wealth-tax in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntative of the deceased and all the properties of the deceased vested in the executor. It was, therefore, contended that the assessee was the owner of the property till the estate was completely administered, and as she was not the Ruler, the provisions of section 5(1)(iii) of the Act or the exemption by virtue of the notification under the Part B States (Taxation Concessions) Order, 1950, would not be available to the assessee. Mr. Qureshi also placed reliance upon the provisions of section 19A with special reference to sub-sections (1) and (2) of the said section to contend that till the administration of the estate is complete the executor is liable under the wealth-tax and is to be assessed in the status of an individual as owner of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the New Palace as the official residence of the Ruler, it is not possible to state that the property in question belongs to the assessee. The assessee was merely an executrix of the estate of the deceased Mahendrasinhji and as per the will of the late Mahendrasinhji, the property in question devolved on the legatee Shri Mayurdhwajsinhji immediately upon his death. There is no dispute as to the fact that Shri Mayurdhwajsinhji was the Ruler and it was he who was in occupation of the property in question. In view of this position, even if we accept the stand of the Revenue that the executrix should be treated as owner of the property till the point of time administration of the estate is complete, on the facts, it is apparent that so far a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eference application, on behalf of the assessee, it was contended that the Tribunal had given its decision on appreciation of facts which were not disputed by the Revenue and hence, it was not necessary to make any reference. However, inspite of the aforesaid finding recorded in its appellate order, the Tribunal has made this reference. At least, the Tribunal should have avoided the litigation about which it has expressed anguish in relation to the order of the Commissioner of Wealth-tax. We, therefore, hold that the Tribunal was justified in holding that the value of the New Palace at Morvi could not be included in the net wealth of the assessee. Question No.1 referred to us is, therefore, answered in the affirmative, i.e., in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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