FIRST WEALTH-TAX OFFICER Vs. G K SHETTY

JUDGEMENT

(1.) The only question for consideration in this appeal is whether the sum of Rs. 1,97,107, being refund of excess income-tax determined after the relevant valuation date, is includible in the wealth of the assessee for the assessment year 1982-83.

(2.) By his order dated 27-10-1982, the ITO determined the amount of Rs. 1,97,107 as refund of income-tax payable to the assessee for the assessment year 1982-83. The WTO included this amount in the wealth of the assessee for the assessment year 1982-83. While doing so, he rejected the contention of the assessee that the amount of refund due to him had not been quantified on the relevant valuation date, i.e., on 31-3-1982 and, as such, it did not constitute his asset on that date for being included in his wealth for the assessment year 1982-83.

(3.) On appeal, the AAC, following the decision of the Gujarat High Court in the case of Cwt V. Arvindbhai Chinubhai,1982 133 ITR 800(Guj) , accepted the contention of the assessee. He held that until the ITO passed the assessment order and quantified the refund, the right to get the refund did not arise to the assessee and, as such the amount of Rs. 1,97,107 was not includible in his wealth for the assessment year 1982.83.