SREEPADAM Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) The petitioner is an assessee to wealth tax. She is the karanavathy of Sreepadam Palace, Trivandrum, a Hindu undivided family till the assessment year 1976-77. The Hindu Joint Family (Abolition) Act, 1975, Act 30 of 1976, came into force on 1-12-1976. During the course of the assessment for the year 1977-78 the petitioner pleaded that in view of Kerala Act 30 of 1976 the joint family got statutorily disrupted. The Income Tax Officer, C. Ward, Trivandrum (who is also Wealth Tax Officer, C. Ward, Trivandrum) accepted the plea. In the income tax assessment, by Ext. P1 order dated 19-2-1979 he assessed the income only up to 30-11-1976. It seems that subsequently the Department took the view that the provisions of Kerala Act aforesaid will have no application to the assessment proceedings of the Hindu undivided family (Sreepadom). So, proceedings were initiated under S.148 of the Income Tax Act for the year 1978-79, 1979-80 and 1980-81 dated 12-6-1981. Such notices issued under the Income Tax Act were successfully challenged by the petitioner in OP. No. 375 of 1982. Exts. P3 and P4 notices in OP. 375 of 1982 for the years 1978-79, 1979-80 and 1980-81 were withdrawn by the Revenue. The Revenue initiated proceedings under S.17 of the Wealth Tax Act (corresponding to S 147 of the Income Tax Act) for the years 1977-78, 1978-79, 1979-80 and 1980-81, evidenced by Exts. P2, P3, P4 and P5, produced in this O.P. The petitioner assails Exts. P2 to P5 as void and illegal.

(2.) It is common ground that the notices issued under the corresponding provisions of the Income Tax Act for the years 1978-79 to 1980-81 were withdrawn by the Department. When the matter came up for hearing, counsel appearing for the petitioner as well as counsel appearing for the Department agreed that pending this OP. (OP. 369 of 1982) the Revenue effected assessment on the petitioner under the Wealth Tax Act for the year 1977-78 in pursuance to Ext. P2 notice. The assessment was taken in appeal before the Appellate Assistant Commissioner of Wealth Tax, Trivandrum. In W.T.A. No. 43-T/82-83 dated 10-1-1984 the Appellate Assistant Commissioner followed the decision rendered by a Division Bench of this Court in W.A.No 159/81 dated 18-8 1981 and also a decision of the Appellate Tribunal rendered in ITA. Nos. 302 and 303 (Coch)/1981 dated 19-2-1983 and held that on the valuation date relevant for the assessment year (1977-78) i e. 31-2-1977, there was no assessable entity to be assessed in the status of a Hindu undivided family and in this view annulled the assessment. The aforesaid order dated 10-1-1984 has become final. It has not been appealed against by the Department. For the assessment year 1977-78 the validity of Ext. P2 notice impugned in this OP. need not be considered.

(3.) We are concerned now with Exts. P3, P4 and P5 notices issued for the years 1978-79, 1979-80 and 1980-81. If there was no assessable entity to be assessed in the status of Hindu undivided family, as on 31-3-1977, relevant for the year 1977-78, it is idle to contend that there could be a Hindu undivided family for the subsequent years 1978-79, 1979-80, and 1980-81. The revenue has no such case. In that view of the matter, Exts. P3, P4, and P5 notices are invalid and totally without jurisdiction. I quash Exts. P3, P4 and P5 on that ground.