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JUDGMENT Kantawala, CJ.-This reference involves a nice question as regards the interpretation of the provisions of section 4(1)(a)( iii) of the Wealth-tax Act, 1957 The question refers to the assessment year 1962-63, for which the relevant valuation date is March 31, 1962 By the two trusts created by the assessee respectively on February 18, 1957, and November 11, 1957, two respective amounts of Rs. 25,101 and Rs. 21,201 were respectively settled upon trusts and transferred to the trustees for the benefit of his two minor daughters. After the trusts were created the trustees out of the trust funds purchased shares. On the valuation date the trust funds were held in shares of which the valuation was Rs. 75,610. In determining the wealth-tax payable by the assessee who is the settlor, the Wealth-tax Officer took the view that it is the market value of the shares on the valuation date that was to be included in the net wealth of the assessee and he accordingly included the sum of Rs. 75,610 being the market value of the shares as part of the net wealth held by the assessee The contention on behalf of the assessee that merely the original sum of Rs. 46,302 which was settled upon trust under the two trusts is to be taken into account, was rejected by him. The decision of the Wealth-tax Officer was confirmed in appeal by the Appellate Assistant Commissioner. On a further appeal before the Tribunal, the Tribunal held that upon interpretation of the provisions of section 4(1)(a)( iii) it was the value of the assets when they were transferred to the trustees that was to be included in the net wealth of the transferor, although the form of the assets transferred may have undergone a change since the date of the transfer and the value thereof on the valuation date was different. According to the Tribunal, since the assets transferred by the assessee were the cash amount of Rs. 46,302 the value of these cash assets, viz., Rs. 46,302, should alone be included in the net wealth of the assessee, the transferor, who was the settlor. On these facts, the following question has been referred at the instance of the revenue, viz.: "Whether, on the facts and in the circumstances of…

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