COMMISSIONER OF WEALTH TAX Vs. SAVITRI DEVI SMT

JUDGEMENT

(1.) THESE fourteen references pertain to the asst. yrs. 1964 -65 to 1970 -71. The relevant valuation dates are 31st March, 1964, 31st March, 1965 and so on for the several assessment years respectively. The assessees, Dr. Roshan Lal and his wife, Smt. Savitri Devi are the owners of a house at 83, Malcha Marg, New Delhi. The common questions pertaining to both the assessees that have been referred for our opinion are as follows :

(2.) IT is conceded by counsel for the applicant that the first question is no longer res integra. It is concluded by the decision of the Supreme Court in CWT vs. P. N. Sikand (1977) 107 ITR 922. In accordance with the said decision, the first question has to be answered in the affirmative and in favour of the assessees. This would mean that 50 per cent. of the unearned increase in the value of the land would be diverted to the lessor before it reached the hands of the assessees as part of the price. In these circumstances, question No. 2 does not arise. In the case of Smt. Savitri Devi a further question has been raised pertaining to gold ornaments and silver utensils. The value of the gold ornaments and silver utensils possessed by her during the relevant assessment years is as follows :

(3.) THESE words though inserted by the said Act of 1971 were to take effect retrospectively from 1st April, 1963. Two provisos and Explanations were also added to this sub -clause but with prospective effect, that is, as from 1st April, 1972. The pertinent proviso and Explanation are set out :