SHRI MOHAMMAD ALI KHAN & OTHERS vs THE COMMISSIONER OF WEALTH TAX.NEW DELHI

The Supreme Court examined the interpretation of Section 5(1)(iii) of the Wealth Tax Act, 1957, concerning the exemption of the Khas Bagh Palace from wealth tax. The Court held that the buildings let out to tenants were not in the occupation of the assessee, thus their value was includible in the net wealth. The Court affirmed the High Court's decision favoring the revenue, emphasizing that a liberal interpretation of the statute is warranted when determining the extent of occupation for exemption purposes.