COMMISSIONER OF WEALTH TAX Vs. CHANCHALBEN

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, Ahmedabad Bench 'B', has referred the following question under Section 27(3) of the Wealth Tax Act, 1957, at the instance of the Commissioner of Wealth-tax. "Whether, in law and on facts, the Appellate Tribunal is right in holding that wealth tax cannot be levied on the assessee in respect of any portion of the compensation in excess of her 1/9th share which she had received during the asst. Year in question"

(2.) The Assessment Years are 1975-76 to 1981-82 and the relevant valuation dates are 31st March, 1975 to 31st March, 1981 respectively. The assessee, an individual, was owner of certain immovable property which was thrown in the common hotchpot of a Hindu Undivided Family by a declaration dated 7th August, 1970. A partial partition of the property took place on 18th August, 1970 as a result of which the assessee was allotted 1/9th share of that property. In relation to the said property land acquisition proceedings were taken and on 3rd October, 1970 the assessee wrote to the authority to pay 1/9th share of the compensation to each one of the 9 members of the Hindu Undivided Family. Accordingly, she received 1/9th share. The Wealth Tax Officer, for Assessment Year 1975-76, instead of taxing an amount of Rs.21,411/- brought to tax an amount of Rs.1,71,214/- as being total of amounts standing in names of different members of the HUF. The figures of addition vary for different years.

(3.) The assessee carried the matter in appeal before the Appellate Assistant Commissioner who, vide his consolidated order dated 11th February, 1987, confirmed the order made by the Assessing Officer. The assessee succeeded in Second Appeal before the Tribunal.