SUBRAMANIAN N V Vs. WEALTH TAX OFFICER

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution of India praying for the issue of a Writ of Certiorari or any other appropriate writ or direction to call for the records from the Additional Wealth Tax Officer, Eluru, and quash the assessment order dated 20-3-1958, made against the petitioner for the year 1957-58.

(2.) THE petitioner and his three sons constituted a Hindu undivided family till 16-9-1957, when a partition between them is stated to have taken place. A notice under Section 14(2) of the Wealth Tax Act (Act XXVII of 1957) was issued to the petitioner and in response thereto the petitioner submitted a return declaring his total wealth at Rs. 11,06,458/- comprising of business assets of the value of Rs. 5,71,399/- and non-business assets of Rs. 5,35,079/-. A notice under Section 16(2) was served upon the petitioner to produce the evidence necessary in support of his return.

(3.) ON the language of the Entry, it is contended that the tax on capital value of the assets can be levied on individuals and companies and since a Hindu undivided family is a separate legal entity not falling within the scope of the expressions "individuals" or "companies", the imposition of tax on the net wealth of a Hindu undivided family under Section 3 of the Wealth Tax Act is incompetent and ultra vires the, Dowers of Union Parliament.