PANDEY K D Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) AT the instance of the assessee, the Income-tax Appellate Tribunal (hereinafter referred to as "the Tribunal") has referred to this court the following two questions under Sub-section (1) of Section 27 of the Wealth-tax Act, 1957:

(2.) THE facts of the case have been set out in the statement of the case and it is unnecessary to repeat them here. Suffice it to say that the assessee who was running a hotel as its sole proprietor entered into a partnership with his son under a deed of partnership dated April 16, 1966, to run the same business. In that firm his share of profits and losses was 75 per cent. In the wealth-tax assessment for the year 1967-68 he claimed that he had transferred his entire business assets including the hotel building which belonged to him individually to the newly formed partnership, that the building became the property of the firm and that he had only 75 per cent. share in the building.

(3.) IN the further appeal by the revenue, the Tribunal held there was no effective transfer of the building from the assessee to the partnership firm, that he continued to be the owner of the entire building and that the entire value thereof should be included in his net wealth.