RATTAN MALA JAIN Vs. WEALTH TAX OFFICER
LAWS(IT)-1989-6-2
INCOME TAX APPELLATE TRIBUNAL
Decided on June 07,1989

Appellant
VERSUS
Respondents

JUDGEMENT

M.C. Agarwal, Judicial Member - (1.)THESE are appeals by the assessee arising out of her wealth-tax assessments for assessment years 1984-85 and 1985-86.
(2.)We have heard the learned counsel for the assessee and the learned Departmental Representative. The facts are that one Shri Jenendra Kumar Jain is a partner in a firm M/s Kishan Flour Mills, Meerut, which owns an industrial undertaking. By an agreement dated 29-6-1977 executed between the assessee, the said Jenendra Kumar Jain and S/Shri Ashok Kumar Jain and Sharad Kumar Jain, who are the wife and sons of late Shri Sumat Prasad Jain, a partnership was created in the name and style of M/s Sumat Prasad Jain & Co. By this agreement it was stated that the said Jenendra Kumar Jain has been authorised to enter into partnership in the firm M/s Kishan Flour Mills and he shall be liable to account for all the profits and gains arising to him in the said firm and such profits shall be deemed to be the profits and gains arising to the firm M/s Sumat Prasad Jain & Co. It was further agreed that all benefits, gains and rights of a partner belong to Shri Jenendra Kumar Jain as a result of his participation in the partnership firm of Kishan Flour Mills shall be owned, held and divided between the four partners of Sumat Prasad Jain & Co. in accordance with the shares specified in the document. The assessee claimed exemption under Section 5(1)(xxxii) in respect of her alleged interest in the firm M/s Kishan Flour Mills and this was allowed by the WTO. There was dispute between the assessee and the WTO about the quantum of the amount on which the aforesaid exemption was available and the assessee appealed to the AAC.
The AAC thought that the assessee was not entitled to any exemption under Section 5(1)(xxxii) and, he, therefore, issued enhancement notices to the assessee proposing to withdraw the exemption and he ultimately withdrew the exemption. As a result the assessee is in appeal before us.

(3.)IN these appeals the assessee re-asserts her claim for exemption under Section 5(1)(xxxii) and also contends for the enhancement of the amount of exemption from that granted by the WTO. The question of the quantification of the amount of exemption would arise only if the assessee's claim is in principle accepted and if that is so, the matter would have to be sent back to the AAC, as he has not decided that issue.


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