SETH GOPALDAS PALIWAL Vs. WEALTH TAX OFFICER

JUDGEMENT

(1.) BY this petition under Article 226 of the Constitution, the petitioner challenges the orders passed by the WTO, F-Ward, Bhopal, on March 20, 1980, and March 27, 1980, (Annexures D and J), refusing to exercise his discretion in favour of the petitioner under Section 31(6) of the W.T. Act, 1957. Notice for admission of this petition was issued to the respondents. The standing counsel has appeared for the Department. With the consent of the learned counsel the petition is heated on merits.

(2.) THE facts briefly stated are that the petitioner was assessed to wealth-tax for the years 1964-65 to 1974-75 in the status of an HUF and the total demand outstanding against the petitioner is Rs. 9,65,000. THE petitioner's case of partial partition was rejected on the ground that the father has no right to create a partial partition in the family without the consent of the adult members relying upon CIT v. Seth Gopaldas [1919] 116 ITR 577 (UP). Leave to appeal against this decision has been granted by this court and the matter is pending in appeal before the Supreme Court. THE aforesaid decision was rendered by this court in income-tax assessment and the same was followed by the WTO in the wealth-tax assessment. THE petitioner's appeal against the assessment made by the WTO for the aforesaid years are pending before the CWT (Appeals). In view of the pendency of these appeals, the petitioner applied under Section 31(6) of the W.T. Act to the WTO for stay of demand and not to treat him in default during the pendency of appeals. It is this application which has been dismissed by the impugned orders mentioned above.