MALTI HARSHEY Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THIS is a case stated by the Income-tax Appellate Tribunal under Section 27(1) of the W.T. Act, 1957, referring for our answer the following question of law :

(2.) IT is not necessary to state the facts in detail. Suffice it to say that the relevant assessment years are 1967-68, 1968-69 and 1969-70 for which the valuation dates are 31st March of 1967, 1968 and 1969, respectively. The assessee made certain gifts to his wife during the accounting years relevant for the assessment years 1960-61, 1961-62 and 1963-64. In other words, the gifts were all completed before 31st March, 1963. Relying on the proviso to Section 4(1)(a) of the Wealth-tax Act, the assessee claimed that the value of the assets transferred by the above gifts was not includible in the net wealth of the assessee for any assessment year commencing after 31st March, 1964, as the transfer of the assets was either chargeable to gift-tax under the Gift-tax Act, 1958, or not chargeable under Section 5 of that Act. The Tribunal negatived this contention on the reasoning that the proviso exempted from inclusion the value of such assets the transfer of which was chargeable to gift-tax or not chargeable under Section 5 of the Gift-tax Act for the assessment year 1964-65 and the proviso did not apply to the assets transferred before the accounting year relevant to the assessment year 1964-65.

(3.) THE question referred is answered in the affirmative. THEre will be no order as to costs of this reference.