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TMI Blog1982 (11) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... y. 3. In her wealth-tax return, the assessee claimed exemption of Rs. 1,50,000 each under section 5(1)(xxxii), in respect of the value of her interest in the aforesaid firm. In the wealth-tax assessment for the assessment years, 1973-74 and 1974-75, the WTO gave exemption of Rs. 94,721 and Rs. 1,09,514 respectively, while in the assessment year 1975-76, be rejected such claim with the following remarks : "The assessee has claimed exemption of Rs. 1,50,000 under section 5(1)(xxxii) in respect of her interest in M/s. Asia Tannery vide this office order-sheet entry dated 17-3-1980 the assessee was required to furnish by 25-3-1980 a copy of balance sheet along with computation of working under section 5(1)(xxxii) so that her claim may be ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of giving exemption for capital employed, while calculating the exemption under section 5(1)(xxxii) of the Wealth-tax Act. Details of total assets including exempted assets have been filed as per chart filed by the counsel for the appellant. The appellant is entitled to exemption amounting to Rs. 1.5 lakhs. The WTO is directed to allow the claim under section 5(1)(xxxii) of the Wealth-tax Act." Following his aforesaid order, the AAC directed the WTO to allow exemption of Rs. 1,50,000 in each of the assessment years 1973-74 and 1974-75 vide his consolidated order dated 21-9-1981. 5. The revenue is now in appeal before the Tribunal. The learned representative for the department invited our attention to section 5(1)(xxxii) which re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t once in the hands of the firm in which he is a partner and again in his individual assessment. At this stage, the learned counsel stated that while working out the value of the assessee's interest in Asia Tannery, no exemption in respect of the land/building owned by the firm, was allowed or considered. In support of this, he invited our attention to the balance sheets of the firm in respect of the years under consideration and explained how the value of the assessee's interest in the firm was arrived at. 6. We have carefully considered the rival submissions of the parties and we find force in the submissions made on behalf of the assessee. At the outset, we are constrained to observe that perhaps the controversy could have been avoided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record. 7. On the plain reading of the provisions of section 5(1)(xxxii), we are clearly of the view that the assessee would be entitled to claim exemption in respect of the land/building owned by the firm, in computing her value of the interest in the said firm. In our view, the words appearing in parenthesis have to be read as a whole and in that view of the matter, since while computing the value of the interest of the assessee in the assets of the firm, no deduction/exemption was considered in respect of the land/building owned by the firm, the assessee would be entitled to claim exemption as contemplated under section 5(1)(xxxii). In this view of the matter, we are not prepared to accede to the submissions made on behalf of the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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