Law:

Section:

Section 4 of the Wealth-tax Act, 1957 – Deemed wealth – Assessment years 1970-71 and 1971-72 – Whether in order to warrant inclusion of value of assets held by spouse or minor child of an assessee on valuation date in net wealth of assessee it is not necessary that concerned properties should have been ‘assets' as defined in Act even on dates when they were transferred by assessee to spouse or minor child – Held, yes – Whether words 'for any assessment years commencing after 31-3-1964' occurring in proviso to section 4(1)(a) refer to assessment year under Gift-tax Act and not assessment year under Wealth-tax Act - Held, yes Words and Phrases : Words ‘such assets' as occurring in section 4(1)(a) of the Wealth-tax Act, 1957 Interpretation of statutes : Literal construction FACTS The WTO acting under section 4(1)(a)( i) and (ii) added to net wealth returned by the assessee the value of agricultural lands gifted by the assessee to his wife and children prior to 1-4-1963, but after the commencement of the Gift-tax Act, 1958. The AAC held that sub-clauses (i) and (ii) of section 4(1)( a) were not attracted to the case since the gift in question was of agricultural lands which did not constitute "assets" within the definition of that expression contained in section 2(e) of the Act as it stood on the date of the said transaction. In this view, the AAC held that the agricultural property gifted by the assessee to his wife and children had to be excluded while computing the net wealth of the assessee. On revenue's appeal, the Tribunal held that there is nothing in the provisions of section 4(1)(a)( i) and (ii) to indicate that the assets transferred by the assessee to his spouse or minor child by gift, etc. and held by the spouse or minor child of the assessee on the relevant valuation date should have been on the date of the gift ‘assets' as defined in the Act as it stood at the time of the transfer. The Tribunal further held sub-clauses (i) and (ii) of section 4(1)(a) would apply to all cases where on the valuation dates assets were held by the spouse or minor child of an assessee pursuant to transfers effected in their favour by the assessee directly or indirectly…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492