G A PARASHURAM Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) In this reference made under the section 27(1) of the wealth-tax Act, the following question is referred for our opinion by the Income-tax Appellate Tribunal.

(2.) The assessee, an individual, advanced certain amounts to his wife, from time to time, which she invested in constructing a house property. Finally, he made a gift of the aggregate amounts advanced to her, on 31/03/1967. By that date, the construction of the house property, in which the wife was investing the said amounts, was completed. For the assessment years 1973-74 to 1976-77, the wealth-tax officer included the market value of the house property in the Wealth of the assessee. The value so included was Rs. 80,000 in the assessment year 1973-74, Rs. 85,000 in the assessment year 1974-75, Rs. 90,000 in the assessment year 1975-76 and Rs. 91,000 in the assessment year 1976-77. This was done negativing the contention of the assessee for excluding the said value from his wealth. An appeal to the Appellate Assistant Commissioner failed in view of the decision of this court in CWT v. Smt. Hashmatunnisa Begum [1977] 108 ITR 98. The assessee then preferred a further appeal to the Appellate Tribunal and relied upon the decision of other High Courts in the country taking a view contrary to the view taken by this court CWT v. Smt. Hashmatunnisa Begum [1977] 108 ITR 98. The Tribunal however, dismissed the appeal in view of the decision of this court which was binding upon it. Thereupon, the assessee applied for and obtained the reference.

(3.) Section 4 of the Wealth-tax Act mentions certain assets which should be included in the net wealth of an individual. The section, in so far it as relevant, reads thus :