1985 (12) TMI 22

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..... ue, referred to us by the Income-tax Appellate Tribunal, Cochin Bench : " Whether, on the facts and in the circumstances of the case and on an interpretation of section 5(1)(xxxii) of the Wealth-tax Act, 1957, read with rule 2 of the Wealth-tax Rules, 1957, the Appellate Tribunal is justified in law in holding that the current account balances of the partners of the firm, amounting to Rs. 2,31,4 .....

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..... s proportionate share of the profit. What is exempted under clause (xxxii) of section 5(1) is the value of the assessee's interest in the assets of the firm as computed in the manner prescribed under rule 2(1) read with rule 2-I of the Wealth-tax Rules, 1957. The interest of the assessee in the assets of the firm is his interest to receive his proportionate share upon settlement of accounts conseq .....

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..... on 5(1) has no application whatsoever. In the circumstances, we answer the question in the negative, that is, in favour of the Revenue and against the assessee. We direct the parties to bear their respective costs in these tax referred case. A copy of this judgment under the seal of the High Court and the signature of the Registrar shall be forwarded to the Income-tax Appellate Tribunal, Coc .....

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