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TMI Blog1987 (1) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Rs. 1,44,890, Rs. 1 lakh represented the amount gifted by the husband which was utilised by the assessee in the construction of the residential house in which she and her husband lived. The assessee claimed exemption of Rs. 1 lakh under section 5(1) (iv) of the Wealth-tax Act, 1957 ('the Act'). Further, the assessee claimed separately a deduction of Rs. 1 lakh in respect of the gift received from the husband which was included in his wealth-tax assessment. The WTO rejected the claim of the assessee stating as under: "The assessee has further claimed deduction of an amount of Rs. 1 lakh from the wealth being the gift received from her husband at this amount is already included in the net wealth of the husband of the assessee. In fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of gift in his wealth and is paying tax on the same and has not claimed deduction under section 5(1) (iv) since the cast of building was much more than Rs. 1 lakh. The said fact is produced before the learned WTO and, therefore, the exemption should be available to the assessee. If the exemption is denied it will amount of double taxation on the same amount. therefore we submit before your honour to allow the deduction under section 5(1) (iv) which is allowed till 1979-80 assessment year." The AAC took he view that there was not justification for including the amount of Rs. 1 lakh in the net wealth of the assessee. The revenue contests the decision of the AAC before us 3. We have heard the learned counsel for the assessee, who su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded in the hands of the transferor is to be treated as belonging to that individual, viz., the transferor. In the present case, the amount transferred of Rs. 1 lakh has been utilised by the wife in building a residential house the value of which came to Rs. 1,44,890. To the extent of Rs. 1 lakh the value of the residential house had to be included in the husband's case and since the husband and wife lived together, it was the value of a house or part of a house belonging to the husband to the extent of Rs. 1 lakh in view of the provisions of section 4(1). What was left in the hands of the wife was, therefore, only the value of the residential house to the extent of Rs. 44,890. She could get a deduction under section 5(1) (iv) only to the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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