COMMISSIONER OF INCOME TAX Vs. MUTHUMMAL SMT N

JUDGEMENT

(1.) T.C. 823 of 1984 relates to income-tax assessment, whereas T.C. 824 of 1984 relates to wealth tax assessment of the same assessee.

(2.) AT the instance of the Department, the Tribunal referred the following questions in both the income-tax assessment as well as the wealth-tax assessment of the same assessee for the asst. yr. 1976-77 for the opinion of this Court :

(3.) INSOFAR as wealth-tax assessment is concerned, it relates to the asst. yr. 1976-77 and the valuation date is 31st December, 1975. Smt. Muthammal derived share income from two firms and other sources. The original assessment was completed on 28th January, 1977 on a total wealth of Rs. 3,13,500 on the basis of return filed on 1st December, 1976, in with the assessee has not shown any wealth in Annexure XV pertaining to assets transferred to spouse/minor child/son's wife/son's minor children. On the basis of communication from the ITO, the WTO re-opened the assessment and included the assets transferred to three minor grandchildren through the medium of three private trusts, viz., Vijayashree Trust, Sujatha Trust and Ranjit Trust respectively created for the benefit of grandchildren by invoking s. 4(1)(a)(v) of the WT Act, 1957. The action of the WTO is similar to the action taken by him in the income-tax assessment for this year.