SUHAS CHANDRA SEN, J.

( 1 ) AT the instance of the CWT, West Bengal-XIII, the Tribunal has referred the following question of law to this court under Section 27 (1) of the W. T. Act:"whether, on the facts and in the circumstances of the case, and on a correct interpretation of Section 5 (1) (iv) of the W. T. Act, 1957, the Tribunal was correct in holding that the assessee was entitled to exemption from wealth-tax in respect of a part of the house property owned by the firm of M/s. Poolchand Bros. and Co. of which he was a partner ?"

( 2 ) THE assessee is a partner heaving 1/4 share in the firm, M/s. Poolchand Bros. and Co. The firm owned a house property which was used by the partners for their residence. According to the firm's balance-sheet, the value of the property was Rs. 1,29,804. The WTO valued it at Rs. 3,00,000. The assessee had shown the value of his share in property at Rs. 31,201. The WTO added the difference of Rs. 43,799 to the net wealth of the assessee.

( 3 ) THE assessee preferred an appeal before the AAC and urged that the firm was not a legal entity and that the assessee as an individual was entitled to the benefit of the exemption under Section 5 (1) (iv) of the W. T. Act. In the alternative, it was urged that the firm itself was entitled to the benefit of Section 5 (1) (iv ). Both these contentions were rejected by the AAC and he affirmed the order of the WTO.

( 4 ) THE Tribunal on further appeal by the assessee held that the exemption under Section 5 (1) (iv) of the W. T. Act was allowable in respect of the house property and reduced the addition of Rs. 43,799 to the net wealth of the assessee.

( 5 ) THE short question before us is whether a partner in his assessment of wealth-tax is entitled to the exemption granted by Section 5 (1) (iv) in respect of a house belonging to the partnership. There is no dispute that the house was being used exclusively for residential purposes by the partners. The only difficulty in this case is that the house formed part of the assets of the partnership. The question, therefore, is can the house be described as "belonging to the assessees" as to enable the partners to claim the benefit of Section 5 (1) (iv ). In order to resolve this controversy, we shall first have to examine the scheme of the W. T. Act, and also the relevant provisions of the Act. A charge of wealth-tax has been imposed by Section 3 which at the relevant time stood as under 1"3. Charge of wealth-tax.--Subject to the other provisions contained in this Act, there shall be charged for every assessment year commencing on and from the first day of April, 1957, a tax (hereinafter referred to as wealth-tax) in respect of the net wealth on the corresponding valuation date of every individual, HUF and company at the rate or rates specified in the Schedule. "

( 6 ) THE other sections which are relevant for our purpose are ;"2. (c) 'assessee' means a person by whom wealth-tax or any other sum of money is payable under this Act, and includes-- (i) every person in respect of whom any proceeding under this Act has been taken for the determination of wealth-tax payable by him or by any other person or the amount of refund due to him or such other person ; , (ii) every person who is deemed to be an assessee under this Act; (iii) every person who is deemed to be an assessee in default under this Act. 2. (m) 'net wealth' means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee on the valuation date other than-- (i) debts which under Section 6 are not to be taken into account; (ii) debts which are secured on or which have been incurred in relation to, any property in respect of which wealth-tax is not chargeable under this Act; a

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