COMMISSIONER OF WEALTH TAX Vs. BALIJEPALLI SRIDEVAMMA

JUDGEMENT

(1.) The question referred under section 27(1) of the Wealth-tax Act is as follows :

(2.) For the assessment year 1976-77, the assessee, the widow of late Sri Balijepalli Krishnamurthi, filed a return admitting a sum of Rs. 5,835 being the value of her life interest in the agricultural lands of extent of 36, 11 1/5 acres. The husband of the assessee executed a will on 7/06/1950, conferring life interest to the wife in the properties. There is no mention about the vested remainder. The wife is empowered to adopt a boy if she chooses to do so. The Wealth-tax Officer held that the assessee was the absolute owner of the entire property left by her husband and did not accept the valuation based upon the claim of life interest. On appeal, the Appellate Assistant Commissioner held that the value of the life interest alone is exigible to levy of wealth-tax. On appeal at the instance of the Revenue, the Appellate Tribunal held that the value of the life interest alone is liable to be assessed as limited estate only was given by the will as provided under section 14(2) of the Hindu Succession Act and the widow did not acquire absolute interest in terms of section 14(1) of the Hindu Succession Act.

(3.) The learned standing counsel for the Revenue contended that the limited estate is enlarged to that of an absolute estate in view of section, 14(1) of the Hindu Succession Act and even otherwise, on the death of the husband and on the date when the will came into force, the wife is entitled to the property absolutely and further, in the absence of any indication regarding the remainder, the intestacy in so far as the remainderman interest should be inferred and from this perspective also the wife gets absolute interest. Learned counsel for the assessee, Sri P. Venkatarama Reddy, seeking to sustain the order of the Appellate Tribunal contended that in view of the specific restriction of life interest in the will, the provisions of section 14(2) of the Hindu Succession Act are attracted and the limited interest is not enlarged and the question of her succeeding to the property does not arise in view of the specific recital in the will.