KUTTAPPAN NAIR K Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THIS is a reference under Section 27(3) of the Wealth-tax Act, 1957, hereinafter referred to as the Act, arising out of the wealth-tax assessment of the assessee for the assessment year 1962-63 for which the corresponding valuation date is August 16, 1961.

(2.) THE dispute involved in the reference relates to whether an amount of Rs. 19,438 being the value of a property standing in the name of the assessee's wife is includible in the net wealth of the assessee.

(3.) THE assessee in including the value of the property in his return for the relevant assessment year proceeded upon the assumption that the property was one transferred by him in the name of his wife and so it came within Section 4(1)(a)(i) of the Act but he was entitled to exemption as it fell within Section 4(4) of the Act. THE revenue took the stand that the assessee's wife was only a benamidar for the assessee. THE Appellate Tribunal and the subordinate authorities disallowed the exemption claimed by the assessee on the ground that the assessee was the real owner of the property. Under Section 3, the charging section in the Act :