Law:

Section:

Section 4, read with sections 2(m) and 3 of the Wealth-tax Act, 1957 – Deemed Wealth – Assessment years 1968-69 and 1969-70 – Whether where karta of HUF happens to be a partner of a firm in his representative capacity, he would fall within definition of assessee contained in section 4(1)(b) – Held, yes – Whether where assessee was partner in firm in his capacity as karta of HUF, his interest in firm would be includible in computation of net wealth of HUF as defined by section 2(m) which was chargeable to wealth-tax – Held, yes Section 7 of the Wealth-tax Act, 1957, read with rule 2 of the Wealth-tax Rules, 1957 – Valuation of assets – Others – Assessment years 1968-69 and 1969-70 – Whether interest of karta of HUF in partnership firm in his representative capacity is to be evaluated and computed under provisions of rule 2 read with section 7 – Held, yes Words and Phrases: Word "assessee" as occurring in section 4(1)(b) of the Wealth-tax Act, 1957. FACTS The assessee was partner in a firm in his capacity as the karta of HUF. In the assessment of the HUF, the WTO held that the interest of the assessee in the said partnership firm was capable of being valued and was liable to be included in making computation of the total wealth of the assessee. The view taken by the WTO was confirmed on appeal by the AAC and by the Tribunal. On reference: HELD The interest of the assessee in the partnership firm wherein he represented the HUF as a karta was includible in the computation of the net wealth as defined by section 2(m) which was chargeable to wealth-tax in making computation of the net wealth. Section 4(1)(b) was attracted to the instant case. It is reasonable to interpret section 4(1)(b), by taking into account the definition of the expression "assessee" contained in section 2(c ). Section 2(c) in terms provides that the assessee means a person by whom wealth-tax or any other sum of money is payable under this Act. There is nothing in section 4(1)(b) which would suggest that the expression "assessee" employed therein is employed in a different sense or in a restricted sense so as to apply it to assessees who are individuals only. If section 4(1)(b ) is interpreted in…

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