KATARI Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE matter here pertains to the assessment of wealth-tax for the years 1974-75 and 1975-76.

(2.) ON May 15, 1975, a decree for declaration was passed against the assessee, Smt. Kartari whereby, her sons were held to be owners in possession of 4/5ths share of agricultural land and a house in Mohalla Dabianwala, Amritsar, with effect from April 14, 1952, by virtue of an oral gift made by her in their favour on that day. In the context of this decree, is the assessee, for purposes of computation of the wealth-tax payable by her, to be treated as having been divested of her title in this property with effect from the date of the oral gift or the date of the decree, that is, from April 14, 1952, or May 15, 1975 ? Herein lies the controversy raised.

(3.) RELYING upon these two judicial precedents, counsel argued that, on a parity of reasoning, as, until registration, title in property cannot be said to pass from the vendor to the vendee, similarly, in the case here, the assessee must be held to be the owner of the land covered by the decree until the date of the passing of the decree and, therefore, the Tribunal rightly held the assessee to be the owner of this property during the two assessment years 1974-75 and 1975-76.