B.P.Jeevan Reddy, C.J. - (1.) Under Section 27(1) of the Wealth-tax Act, 1957, the Tribunal has stated the following question: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the assessee was entitled to exemption as laid down under Clause (xxxi) of Sub-section (1) of Section 5 of the Wealth-tax Act, 1957, on the value of the oil mill machinery owned by the assessee, even though the oil mill was not run by the assessee but by another person, to whom it had been rented out ?"
(2.) The assessee is an individual. The assessment years concerned are 1973-74 and 1974-75. The assessee was the owner of an oil mill engaged in manufacture of oil.
(3.) He was not himself doing the business. He had let out the mill on rent. In his wealth-tax assessment, he claimed exemption for the amount representing the value of machinery comprised in the said oil mill under Clause (xxxi) of Sub-section (1) of Section 5 of the Wealth-tax Act. This was rejected by the Wealth-tax Officer, but on appeal the Appellate Assistant Commissioner agreed with the assessee. The Tribunal dismissed the appeal preferred by the Revenue. Section 5 specifies the assets which shall not be included in the net wealth of the assessee. In so far as it is relevant, Section 5(1) reads as follows : "5. Exemptions in respect of certain assets. --(1) Subject to the provisions of Sub-section (1A), wealth-tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee ... (xxxi) the value, as determined in the prescribed manner of assets (not being any land or building or any rights in any land or building or any asset referred to in any other clause of this sub-section) forming part of an industrial undertaking belonging to the assessee ..." The Explanation appended to the clause defines the expression "industrial undertaking.";