- (1.) THE Tribunal, Allahabad has referred the following question of law under s. 27(1) of the WT Act, 1957, hereinafter referred to as 'the Act', for opinion to this Court : "Whether the Tribunal was justified in holding that the assessee was entitled to exemption under s. 5(1)(iv) of the WT Act in respect of his share in form of immovable properties of the firm for asst. yr. 1980 -81 -
(2.) BRIEFLY stated the facts giving rise to the present reference are as follows : "The present reference relates to the asst. yr. 1980 -81. The respondent was a partner in a firm styled as Bharat Talkies, which owned a cinema building. The respondent claimed exemption under s. 5(1)(iv) of the Act in respect of his share in the cinema building, which was allowed by the WTO. However, the CWT considering the said assessment to be erroneous as also to be prejudicial to the interest of the Revenue passed an order under s. 25(2) of the Act directing the WTO to recompute the wealth of the respondent after withdrawing the exemption allowed to him under s. 5(1)(iv) of the Act. On appeal filed by the respondent before the Tribunal, the Tribunal has accepted the claim of the respondent and cancelled the order of the CWT."
(3.) WE have heard Sri A.N. Mahajan, the learned counsel for the Revenue. Nobody has put in appearance on behalf of the respondent. A perusal of s. 5(1)(iv) of the Act shows that the deduction is permissible in respect of one house or part of the house. A Division Bench of this Court in the case of CIT vs. Jai Kishan Gupta (2003) 185 CTR (All) 340 : (2003) 264 ITR 482 (All) has held that exemption under s. 5(1)(iv) of the Act is not available to a cinema building as it is not a building for human habitation or a dwelling or a home and a cinema hall is not a house at all.;