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TMI Blog1984 (7) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... value of land and buildings forming part of the assets of the said firm ? " In all these cases, on the relevant valuation dates, the assessees were partners in a firm owning an industrial undertaking known as M/s. Coronation Litho Works at Sivakasi. In computing the exemption under section 5(1)(xxxii) of the Wealth-tax Act, hereinafter referred to as " the Act", read with rule 2(1) of the W.T. Rules, 1957, in respect of the assessees' interest as a partner in the industrial undertaking, the Wealth-tax Officer deducted the value of the land and building belonging to the firm of M/s. Coronation Litho Works, Sivakasi, after rejecting the contention of the assessees that since the land and building represent the items of assets referred to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(1)(xxxii) read with rule 2(1) of the Wealth-tax Rules. Section 5(1) is in the following terms: "Subject to the provisions of sub-section (1A), wealth-tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee . ...... (xxxii) the value, as determined in the prescribed manner of the interest of the assessee in the assets (not being any land or building or any rights in any land or building or any asset referred to in any other clause of this sub-section) forming part of an industrial undertaking belonging to a firm or an association of persons of which the assessee is partner or, as the case may be, a member. " As per the above provision, wealth- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er clauses that will stand excluded and not any land and building or any rights in any land or building whether referred to or not in the earlier clauses. We are inclined to agree with the contention advanced on behalf of the assessees that there was no warrant for excluding the value of the land or building in computing the exemption. Section 5(1)(xxxii) provides for the exclusion of the value as determined in the prescribed manner of the interest of the assessee in the assets forming part of an industrial undertaking belonging to a firm. The prescribed manner referred to in the section is the manner prescribed in rule 2(1) of the Wealth-tax Rules. According to the Revenue, the assets forming part of the industrial undertaking belonging to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in such assets are not to be excluded but only the value of the assets themselves. In this view, the interpretation sought to be placed by the Revenue on clause (xxxii) of section 5(1) is not possible of acceptance. Even if such an interpretation is accepted as being possible, we consider that the interpretation beneficial to the assessee should be adopted, as that is one of the well-known canons of interpretation of statutes as has been held by the Supreme Court in CIT v. Vegetable Products [1973] 88 ITR 192. As already pointed out, in the earlier clauses of sub-section (1) of section 5, reference is made to land or building as also assets. But there is no clause referring to interest in land or building. The learned counsel for the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption under this clause, if any land or building or interest in any land or building or any other asset had been excluded under other clauses in sub-section (1) of section 5, those items cannot again be excluded under clause (xxxii) of sub-section (1) of section 5 of the Act. Such being the object of the provision, we have to interpret clause (xxxii) as not including any land or building or interest in any land or building or asset which has been referred to in any other sub-clauses under sub-section (1) of section 5 of the Act. In this view, we have to agree with the interpretation given by the Tribunal on clause (xxxii) of section 5(1) of the Act. We have to, therefore, answer the question in the affirmative and against the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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