COMMISSIONER OF WEALTH-TAX Vs. KIRAN DEVI

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, Delhi, has referred the following question of law under Section 27(1) of the Wealth-tax Act, 1957 (herein-after referred to as "the Act"), for opinion to this court :

(2.) The reference relates to the assessment years 1984-85 and 1985-86.

(3.) Briefly stated, the facts giving rise to the present reference are as follows : The respondent-assessees who are two in number while filing their return of wealth for the assessment year 1984-85 has shown only the value of their buses and not of the route permits. The Wealth-tax Officer included the value of the route permits also while determining the taxable wealth which order was confirmed by the Appellate Assistant Commissioner in appeal. However, in further appeal the Tribunal had held that under Section 58 of the Motor Vehicles Act, 1939, duration of the route permit is not to be less than three years and not more than five years. The Tribunal has further found that in view of the provisions of Section 59 of the Motor Vehicles Act the permit is non-transferable except with the permission of the transport authority and it is liable to be cancelled under Section 60 of the aforesaid Act. The Tribunal had held that in view of the provisions of Section 2(c)(v) of the Act which has been inserted with effect from April 1, 1969, any interest in property where the interest is available to the assessee for a period not exceeding six years from the date the interest vests in the assessee is not included in the definition of the asset. The Tribunal accordingly deleted the additions made in the net wealth on account of the route permits. While holding so the Tribunal has relied upon a decision of the apex court in the case of CWT v. Smt. R.A. Muthukrishna Ammal AIR1969 SC 740 , [1969 ]72 ITR801 (SC ), [1969 ]2 SCR1 .