COMMISSIONER OF WEALTH TAX Vs. NARENDRA KUMAR GUPTA

JUDGEMENT

(1.) August 27, 2004.The Income-tax Appellate Tribunal, New Delhi, has referred the following question of law under Section 27(1) of the Wealth-tax Act, 1957, hereinafter referred to as "the Act", for the opinion to this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that though the right to exploit a particular film for a particular period is property, it is not such an asset whose value can be added by making adjustments in the balance-sheet while acting under the provisions of Section 7(2) (a) of the Wealth-tax Act ?"

(2.) The present reference relates to the assessment year 1975-76. By a consolidated order, the Tribunal has referred the aforementioned question of law in respect of three assessees, namely, Narendra Kumar Gupta, Prem Kumar Gupta and Smt. Krishna Kumari, who were the partners, in the firm, M/s. Film Angels, hereinafter referred to as the "firm".

(3.) Briefly stated the facts giving rise to the present reference are as follows :