COMMISSIONER OF WEALTH TAX Vs. INDIRABAI

JUDGEMENT

(1.) M. C. C. No. 120 of 1984 is filed by the Commissioner of Income-tax under Section 256(2) of the Income-tax Act, 1961, seeking reference of certain questions of law. The other applications are filed by the Commissioner of Wealth-tax seeking reference under Section 27(3) of the Wealth-tax Act, 1957.

(2.) THE application under Section 256(2) of the Income-tax Act, 1961, relates to the income-tax assessment of Ram Kumar Soni as a Hindu undivided family for the assessment year 1975-76. THE other applications relate to the wealth-tax assessment of Ram Kumar Soni as a Hindu undivided family during 1966-67 to 1975-76. On the death of Ram Kumar Soni, his legal representatives have been impleaded as respondents.

(3.) OUR attention is invited to paragraphs 16 to 18 of the order passed by the Income-tax Tribunal. In paragraph 16, reference has been made to the fact that in the original return the entire quantity was claimed as belonging to the Hindu undivided family and the claim made on behalf of the three ladies was made belatedly. The Tribunal also commented on the change in the assessee's stand. The Tribunal also noticed the absence of evidence to hold that the jewellery claimed belonged to the three ladies. Paragraph 17 adverts to the claim made by Phoolabai and Mullabai. It refers to the statement of Phoolabai which did not contain any claim regarding jewellery and the answer elicited by a leading question. There is a similar reference to the statement made by Mullabai. Paragraph 17 ends by stating that besides what was indicated above, there was no evidence to suggest that the ladies possessed the above ornaments. Paragraph 18 refers to the possibility of the ornaments belonging to Babulal and Smt. Shyambai and given to the Hindu undivided family as well as the averment made in the revised return that a part of the ornaments belonged to the ladies. Thereafter is the conclusion that silver weighing 338 tolas and 214 tolas be treated as accumulation of the family over a number of years and gold ornaments weighing 383 tolas and silver ornaments weighing 2,070 tolas be treated as belonging to Phoolabai and her family. According to the Revenue, these conclusions are based entirely on surmises and not on any legally admissible material.