R V KAMALAM Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THIS reference has been made by the Tribunal under Section 27(3) of the Wealth-tax Act, and the question referred to us for decision is whether in the circumstances the wealth-tax levied on the legal representative of the deceased who is the assessee, is in accordance with law.

(2.) THE facts and circumstances which led to this reference can be briefly stated: THE assessee's brother submitted a wealth-tax return for the assessment year ending March 31, 1959, wherein he showed that he was possessed of jewels worth Rs. 40,000. THE Wealth-tax Officer, however, did not accept that return, but proceeded to value the jewels in his hands at Rs. 1,00,000 based on the valuations of the jewels made in the previous years. His statement that he has disposed of a substantial portion of the jewels during that assessment year and that what remained with him was only jewels worth at Rs. 40,000 was specifically disbelieved. THE valuation of the jewels at Rs. 1,00,000 during that assessment year was ultimately confirmed by the Tribunal. Subsequently the assessee's brother died on October 26, 1959, leaving the assessee as his only legal representative. Proceedings were thereafter initiated against the assessee both under the Estate Duty Act as well as the Wealth-tax Act.