Commissioner of Wealth Tax vs G. Sagar Suri and Sons

Sharma, J.—This is a petition u/s 27(3) of the Wealth-tax Act, 1957 (''the Act'') preferred by the revenue, relevant to the assessment year 1982-83, seeking a direction to the Tribunal to state a case and refer to this Court for its opinion the following question, stated to be a question of law:

"On the facts and in the circumstances of the case, the learned Dy. Commissioner (Appeals) has erred in directing to allow exemption u/s 5(1)(iv) of the Wealth-tax Act, 1957, in respect of asset which is merely ''interest in the property'' at 14-C, Sagar Apartment, New Delhi."

The assessee is being assessed in the status of HUF. The assessee declared the value of flat No. 14-C, Sagar Apartment, at Rs. 2,99,360 and claimed exemption u/s 5(1)(iv) of the Act at Rs. 1 lakh against the same. The WTO denied exemption sought for under the aforesaid provision on the ground that the flat was not registered in the name of the assessee. In the appeal preferred by the assessee, the Deputy Commissioner (Appeals) directed for allowing the aforesaid deduction u/s 5(1)(iv). Being aggrieved the revenue preferred an appeal before the Tribunal. The Tribunal, however, rejected the appeal filed to the revenue, upon which a petition u/s 27(1) was preferred by the revenue which was also rejected by the Tribunal. Hence, this petition before us.

We have heard Mr. S.P. Pandey, the learned counsel for the revenue as also Mr. Anurag Chawla for the assessee. On going through the orders passed in the present case and on perusal of the question proposed by the revenue and stated to be a question of law, we are of the opinion that, a question of law does arise in the present case as it involves interpretation of the provisions of clause (iv) of section 5(1), and also applicability of the said provisions to the facts of the present case. However, we find that the question as proposed is not properly worded. We, accordingly, reframe the question in the following manner:

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in allowing exemption u/s 5(1)(iv) of the Wealth-tax to Act, 1957 in respect of the asset situate at 14-C, Sagar Apartment, New Delhi, which is not registered in the name of the assessee?"

and we direct the Tribunal to state a case and refer the aforesaid reframed question of law to this Court for its opinion. The petition is disposed of, accordingly, but without any order as to costs.