COMMISSIONER OF WEALTH-TAX Vs. SAIFUDDIN

JUDGEMENT

(1.) Since the question involved in both these references is common, they are disposed of by this judgment.

(2.) At the instance of Revenue, the Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated September 1, 1986, in relation to the assessment years 1973-74 to 1979-80 under Section 27(1) of the Wealth-tax Act, 1957 :

(3.) In the case of Nawab Sir Mir Osman Ali Khan v. CWT [1986] 162 ITR 888, it was held by the apex court that for the purpose of wealth-tax, unless the immovable property is transferred by a registered sale deed, the transferor shall be considered to be the owner of that property. In that case the apex court while interpreting the provisions of Section 2(m) came to the conclusion that the liability to wealth-tax arises because of the property belonging to the assessee on the valuation date and not merely by possession or joint possession. In view of the above decision, since in the present case the property, i.e., the cinema building, is owned by Sanghi Brothers and the deed of conveyance was not executed or registered, the assessee cannot be made liable for wealth-tax.