9911796707
TMI Blog1991 (7) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... t the exemption is justified ?" The assessee purchased a house property on June 7, 1971, at Bangalore for a total consideration of Rs. 1,12,730. In the declaration dated June 22, 1972, filed before the assessing authority, the assessee had stated that the property was purchased by her for the "thavazhi" consisting of herself, her son, Dr. Mohan P. Thampy, and daughter, Smt. Thara K. Nair. However, by a letter dated January 1, 1973, the assessee had informed the Department that, as on the date of purchase, the assessee had with her a sum of Rs. 31,818 belonging to the "thavazhi" (as per her books of account) and the said amount was made available to purchase the property. That, however, was not sufficient. She, therefore, had to contribute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act. Expanding this argument, he submitted that the exemption under section 5(1)(iv) can be granted only in the event of a house being treated as converted property within the meaning of section 4(1A). Since the assessee has not claimed exemption under any other sub-clauses of section 5, there is no need to go into the question whether this converted property requires to be excluded while computing the net wealth of the assessee. Counsel for the assessee, on the other hand, contended that since the house was purchased with the funds belonging to the assessee also, the assessee is entitled to get the benefit of section 5(1)(iv) because the said section provides for the exclusion of one house or part of a house belonging to the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereof shall be deemed to be assets belonging to the individual and not to the family;... (3) where the value of any assets is to be included in the net wealth of an assessee in accordance with clause (a) of sub-section (1) or sub-section (1A), -.... (b) the provisions of section 5 shall apply in relation to such assets as if such assets were assets belonging to the assessee." It is clear from the plain and unambiguous language used in section 4(1A) that the separate property of an individual, being a member of Hindu undivided family, thrown by him into the hotchpot of the family directly or indirectly and otherwise than for adequate consideration will be called converted property and this converted property, for the purpose of compu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e whether the claim of the assessee for exemption under section 5(1)(iv) is maintainable. That the converted property cannot be said to be a house property is beyond challenge. That the assessee had contributed only a specified sum towards the consideration for the purchase of the house at Bangalore is beyond dispute. To put it differently, going by the findings, the contributed property cannot be said to be a house property. If that be the position , the claim for exemption under section 5(1)(iv) is not sustainable. The Tribunal must, therefore, be held to have erred in holding that the assessee was entitled to get the benefit of section 5(1)(iv) of the Act. Question No. 1, therefore, is answered in the negative and against the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
