COMMISSIONER OF WEALTH TAX Vs. DAMYANTI DEVI JHUNJHUNWALLA

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.) On a perusal of the assessment record, the Commissioner of Wealth-tax found that the assessment so made was erroneous and prejudicial to the interests of the Revenue. He held that the value of the said flat should be determined on rental basis by allowance of outgoings. He, therefore, initiated proceedings under Section 25(2) of the Wealth-tax Act, 1957, and determined the value of the said flat at Rs. 1,40,600.

(3.) Aggrieved, the assessee came in appeal before the Tribunal against the said order of the Commissioner of Wealth-tax. It was contended that the Commissioner of Wealth-tax was not justified in invoking the provisions of Section 25(2) of the Wealth-tax Act inasmuch as the Wealth-tax Officer had not committed any error in determining the value of the assessee's interest in the flat in question. It was submitted that, since the immovable asset in question was not transferred to the assessee by execution and registration of a deed, the ownership of the property was not transferred to the assessee. It was urged that, although the assessee was in possession of the immovable asset, she was not the owner of the property in question. The Tribunal allowed the assessee's appeal.