1981 (7) TMI 20

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..... Madras. She occupied 2/3rds portion thereof for her residence and the remaining 1/3rds of the property was let, out. The contention raised before the Asst. Controller was that the exemption under s. 33(1)(n) of the Act was allowable to the full extent of Rs, 1,00,000. The Asst. Controller took the view that the relief was restricted to the proportionate value of the portion under the occupation of the deceased. This view of the Asst. Controller was confirmed by the Appellate Controller. The executor appointed under the will left by the said Ranganayaki Ammal took the matter in appeal to the Tribunal. The Tribunal was of the view that the exemption under s. 33(1)(n) of the Act was only in respect of proportionate part of the portion under t .....

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..... the deceased for his residence, to the extent the principal value thereof does not exceed rupees one lakh if such house is situate in a place with a population exceeding ten thousand, and the full principal value thereof in any other case." The effect of the argument of Mr. Natarajan would involve the reading of the provision in the following manner: " One house or part of the house exclusively used by the deceased for his residence, to the extent the principal value of the house (and not part of it) does not exceed rupees one lakh, if such house is situate in a place with a population exceeding ten thousand; and the full principal value of the house in any other case." The result of reading this provision in this manner would be t .....

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..... the principal value thereof does not exceed rupees one lakh if such house is situate in a place with a population exceeding ten thousand." If it is read in the above manner, it would be clear that the exemption is available only to the proportionate part and not to the whole of rupees one lakh. It is settled that an exemption provision requires to be strictly construed. In our opinion, there is some inelegance in the drafting by the use of the expression "thereof " in more than one place in the provision with different meanings. But the words " such house " used in the said provision makes it clear that the exemption is only with reference to the house as such and, if it is partly occupied, the exemption available is only with reference .....

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