1999 PLP 940 (PTD)
COMMISSIONER OF WEALTH TAX Versus M. RAMAMURTHY
| Citation | 1999 PLP 940 (PTD) |
| Forum / Court | 232 I T R 687 |
| Bench Members | K.A. Thanikkachalam and N. V. Balasubramanian, JJ |
| Parties | COMMISSIONER OF WEALTH TAX Versus M. RAMAMURTHY |
| Primary Law | Wealth tax |
Q1: What are the key laws and sections cited in 1999 PLP 940 (PTD)?
This judgment primarily cites: Wealth tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1999 PLP 940 (PTD)?
The case was heard and decided by the 232 I T R 687 bench comprising: K.A. Thanikkachalam and N. V. Balasubramanian, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1999 PLP 940 (PTD) (COMMISSIONER OF WEALTH TAX Versus M. RAMAMURTHY). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Partner
Interest of partner in firm owning industrial undertaking
Computation of interest of partner in firm
Value of lands and buildings not to be excluded
Indian Wealth Tax Act, 1957, S.5(l)(xxxii)-- Indian Wealth Tax Rules, 1957, R.2(1). Having regard to the object and purpose of clause (xxxii) of section 5(l) of the Wealth Tax Act, 1957, if any land or building or interest in any land or building or any other asset had been excluded under any of the clauses in subsection (1) of section 5, those items, should not again be given exemption under clause (xxxii) of section 5(1) of the Act. The value of the assessee-partner's interest in the firm to be excluded from their total wealth under section 5(1)(xxxii) read with Rule 2(1) of the Wealth Tax Rules, 1957, should include the value of the land and building forming part of the assets of the firm. CWT v. Barley Dharmaraja (D.C.) (1986) 158 ITR 369 (Mad.) fol. C.V. Rajan for the Commissioner. R. Janakiraman for the Assessee.
Judgment & Decree
K.A. THANIKKACHALAM, J.
At the instance of the Department, the Tribunal has referred the following common question of law for the opinion of this Court. "Whether the Tribunal is correct in law in holding that for the purpose of valuation of the share of interest of a partner in a firm under section 5(1)(xxxii), the value of land and building of the firm should not be excluded?" A similar question came up for consideration before this Court in CWT v. D.C. Barley Dharmaraja (1986) 158 ITR 369 wherein this Court held that having regard to the object and purpose of clause (xxxii) section 5(1) if any land or building or interest in any land or building or any other asset had been excluded under any of the clauses in subsection (1) of section 5, those items should not again be given exemption under clause (xxxii) of section 5(l) and that clause (xxxii) will have to be interpreted as not including any land or building or interest in any land or building or asset, which had been referred to in any other clauses of section 5(1). The Tribunal was, therefore, right in holding that the value of the assessee partner's interest in the firm to be excluded from their total wealth under section 5(1)(xxxii) read with Rule 2(l) of the Rules should include the value of the land and building forming part of the assets of the firm. In view of the above decision the order passed by the Tribunal is in order. Accordingly, we answer this question in the affirmative and against the Department. No costs. M.B.A./1877-FC/ Reference answered.