GOVINDA CHANDRA DAS Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THIS reference, under s. 27(1) of the WT Act, has been made in circumstances hereinafter related. Govinda Chandra Das is the Karta of an HUF consisting of himself and several others. The family is governed by the Dayabhaga school of Hindu law. They used to be assessed, for the purpose of wealth-tax, as HUF, in respect of wealth consisting of house properties and bustee lands. For the asst. yr. 1961-62, they were so assessed, namely, assessed as HUF by the WTO. The assessee became aggrieved by the assessment and appealed before the AAC. It was contended before the AAC that inasmuch as the assessee family was governed by the Dayabhaga school of Hindu law "there could be no HUF in respect of the house properties which formed the subject-matter of wealth-tax assessment". The AAC upheld the contention and held that, since the assessee was governed by the Dayabhaga school of Hindu law, the house properties could not vest in the HUF and could not, therefore, be assessed jointly in the status of HUF. He, therefore, directed that the value of house properties, which was included in the net wealth, should be deleted from the assessment. Aggrieved by the order of the AAC, the Revenue appealed before the Tribunal. There was a difference of opinion between the Accountant Member and the Judicial Member. The Accountant Member held that the order passed by the AAC was legal and correct and the Judicial Member held a contrary opinion. Thereupon the matter was placed before the President of the Tribunal under s. 5A(7) of the Indian IT Act, 1922, to decide the following question of law :