Ajit K.Sengupta, J. - (1.) In this reference under Section 27(1) of the Wealth-tax Act, 1957, for the assessment years 1969-70, 1970-71 and 1971-72, the following common question of law has been referred to this court : "Whether, on the facts and in the circumstances of the case and on a correct interpretation of Section 5(1)(iv) of the Wealth-tax Act, 1957, the Income-tax Appellate Tribunal was justified in law in holding that the assessee was entitled to deduction under Section 5(1)(iv) of the Wealth-tax Act, 1957, in respect of his leasehold property?"
(2.) The disputes relate to the assessee's claim for exemption under Section 5(1)(iv) of the Wealth-tax Act, 1957, in respect of the property at 15, Shib Thakur Lane, Calcutta. The Wealth-tax Officer noticed that the assessee had taken a lease of this building for 35 years with an option for a further renewal for 35 years. The value of the leasehold property was not disclosed in the return in the first instance. Later, the assessee showed it at 12 times the net rental income which came to Rs. 1,61,888. The Wealth-tax Officer estimated it at Rs. 1,75,680 and included the same in the net wealth of the assessee.
(3.) On appeal, the assessee claimed deduction under Section 5(l)(iv) as two-thirds portion of the premises was being used by him for residential purposes and the same was allowed by the Appellate Assistant Commissioner.;