MADHAVAN NAMBIAR K Vs. WEALTH TAX OFFICER

JUDGEMENT

(1.) IN this writ petition, filed under art, 226 of the Constitution, the petitioner seeks to quash the proceedings initiated against him as the karta of Kanakathidam family, a Marumak-kattayam tarwad, for the alleged escaped assessment of wealth-tax within the meaning of Section 17 of the W.T. Act, 1957, hereinafter referred to as "the Act". He has been notified that the net wealth of the family chargeable to tax for the assessment year 1970-71 had escaped such assessment and, therefore, it was proposed to reassess the net wealth. A consequent request has been made to him to file a return of the net wealth chargeable to tax within 35 days of the receipt of the notice. This notice is sought to be quashed as also the attachments effected in the proceedings subsequently.

(2.) THE petitioner's case is as follows : Kanakathidam tarwad was never an assessee to wealth-tax or income-tax. It had only a common dilapidated tarwad house and the jenmam rights in a few items of agricultural lands, all in the possession of tenants besides some tracts of forest land, of about 900 acres, which were in the possession of one Erinhal Kareevande Valappil tarwad, referred to hereinafter as "A.K. family" on saswatham right on an annual rent of Rs. 20. In respect of the remaining portion of the forest lands there were serious title disputes with six claimants over the same claiming exclusive rights, the claimants being the said A.K. family, the Govt. of Kerala and the Kerala Wakf Board, the petitioner's family and two others. THE lands owned and possessed by the tarwad were not fetching any appreciable income. In regard to the forest land, in view of the serious disputes over the same, the title remained uncertain and doubtful. THEre was also no real income from the same and, therefore, nobody would have come forward to purchase the tarwad's rights in these lands for any price at that time. THErefore, according to the petitioner, the tarwad was never considered to possess and own a net wealth beyond the taxable limits under the provisions of the Act.

(3.) THE petitioner and some other members of the family withdrew their share of the compensation in deposit, amounting in all to about Rs. 24 lakhs and re-deposited most of the same in the State Bank of Travancore, Tiruppur branch. THE shares of the other members, who have not, unlike the petitioner, withdrawn the same from the court, are still lying asjdeposits made by the Sub-Court, Tellicherry, in income yielding securities.