Law:

Section:

Section 3, read with section 2(m), 4 and 6 of the Wealth-tax Act, 1957 - Charge of tax - Assessment year 1959-60 - Whether petitioner financial corporation was covered by expression 'individual' used in section 3 - Held, yes - Whether definition of 'net wealth' in section 2(m) does not suggest, much less establish, that corporations created by statute are excluded from purview of Act - Held, yes Words and phrases: Expression 'individual' as occurring in section 3 of the Wealth-tax Act, 1957. FACTS The WTO issued a notice to the petitioner Corporation to submit return of wealth-tax. The Corporation contended that the wealth-tax is payable only by an individual or a HUF or a company and that since it did not fall within any of those categories it was immune from payment of the tax. The WTO rejecting the stand of the petitioner and issued demand notice claiming tax. The Assistant Commissioner, with whom the appeal was filed, rejected the same. On writ petition: HELD The expression 'individual' is not defined in the Act. However, it is manifest that Parliament was conversant with such an expression inasmuch as it had been used in sections 3 and 16 of the Indian Income-tax Act, 1922, which was in force at the time the Wealth-tax Act was placed on the statute book of the country in 1957. Again, in item 86, List I, Schedule VII, of the Constitution of India, the expression 'individual' had also been used. Therefore, Parliament must be imputed with the knowledge of the meaning and connotation of the expression 'individual' used in the Income-tax and the Constitution of India when it adopted the same expression in section 3 of the Wealth-tax Act. The relevant parts of sections 4 and 6 of the relate to human beings and not to a group of persons forming a unit or a corporation created by statute. This reading of the relevant parts of sections 4 and 6 does not militate against the generic meaning of the expression 'individual' used in charging section 3. The two provisions, namely, section 3 on the one hand and sections 4(1) and 6 on the other hand, can stand side by side. When the net wealth of a natural person is to be computed then the relevant provisions of section…

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