MURARI MOHAN DUTTA Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) In this reference under Section 27(1) of the Wealth-tax Act, 1957, for the assessment year 1976-77, the following question of law has been referred to this court :

(2.) Shortly stated, the facts are that the assessee is an individual. The valuation date for the assessment year 1976-77 was April 13, 1976. He objected to the addition of the value of gold and gold coins amounting to Rs. 6,96,544 which were seized from his custody by the income-tax authorities on January 17, 1975, and, later on, the Customs Authorities took over the custody of the said gold and gold coins from the income-tax authorities on January 18, 1975. The Collector of Customs initiated action against the assessee in respect of the said seized gold and gold coins and ultimately confiscated the same, vide his order dated June 29, 1978.

(3.) The Wealth tax Officer included the value of the seized ornaments in his net wealth as on April 13, 1976. The assessee opposed the above action of the Wealth-tax Officer and pointed out to him that the aforesaid gold and gold ornaments did not belong to him after their seizure and confiscation, and that the confiscation order dated June 29, 1978, related back to the date of seizure of the said ornaments, namely, January 17, 1975. Inasmuch as the said date fell prior to the valuation date, namely, April 13, 1976, the value of the said seized assets ought not to be included in his wealth. The Wealth-tax Officer did not accept the above submission of the assessee and, accordingly, he included the said value in the assessee's wealth on the ground that the aforesaid gold and gold coins continued to be the property of the assessee on the valuation date.