COMMISSIONER OF WEALTH TAX Vs. MEATTLES P LIMITED

JUDGEMENT

(1.) In this reference under section 27(1) of the Wealth-tax Act, 1957 (for short called "the Act"), the following question of law has been referred for the opinion of the court :

(2.) The reference arises out of the assessment to wealth-tax of M/s. Meattles Pvt. Ltd. of Delhi for the assessment year 1958-59. The date of valuation of the assessed is March 31, 1958. For the assessment year 1957-58, in compliance with the direction of this court in W.T.C. No. 1-D/65, the Income Tax Appellate Tribunal (for short called "the Tribunal") drew up a statement of the case and referred for the decision of this court the following question of law :

(3.) This was registered as W.T.R. No. 4 of 1972 CWT V/s. Meattles P. Ltd., 1985 156 ITR 569 . In consideration of the facts and for the reasons recorded in our judgment of January 6, 1984 (which may be taken as part of this reference also), we answered the reference in favor of the Department and against the assessed. It was stated that in the case of immovable property of the value of Rs. 100 and above, its transfer can be effected only by means of an instrument in writing, duly stamped and registered. This principle has been consistently applied to a number of decisions in the context of the question of capital gains and balancing charge which arise on a transfer or sale. It was held that the assets of the Crown Flour Mills continued to belong to the assessed company in the absence of the transfer of the title by a valid sale deed and the proprietary rights did not get extinguished by mere acts attributed to the assessed.