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Section 4 of the Wealth-tax Act, 1957 - Deemed Wealth - Position prior to 1-4-1972 - Whether act of impressing separate individual property as joint family property by a declaration could not be regarded as transfer so as to attract section 4(1)(a)(iii) - Held, yes FACTS The assessee was the karta of a HUF, comprising of himself, his wife, and his children. He transferred by a declaration in the year 1959 certain shares in companies owned by himself, to the said HUF. The declaration was to the effect that after the date of transfer he would continue to hold those shares as part of the said HUF. In his return, for wealth-tax purposes, the assessee excluded from his wealth the value of the said shares on the ground that they had ceased to be his individual property by reason of the fact that he had impressed them with the character of joint family property. The WTO refused to accept this contention and included the value in the net wealth of the assessee. On appeal, the AAC accepted the contention of the assessee. On further appeal by the revenue, the order of AAC was upheld by the Tribunal. On reference: HELD It has been held by the Supreme Court in Goli Eswarainh v. CGT [1970] 76 ITR 675 and by the High Court inDamodar Krishnanji Nirgude v. CIT [1962] 46 ITR 1252 (Bom.), that the act of impressing separate individual property as joint family property by a declaration could not be regarded as a transfer. In view of these decisions, it was to be held in the instant case that the shares could not be said to have been transferred by the assessee for his benefit or for the benefit of his wife or for the benefit of children so as to attract section 4(1)(a)(iii ). Note: The decision was in favour of assessee. CASES REFERRED TO Damodar Krishnaji Nirgude v. CIT [1962] 46 ITR 1252 (Bom.), Goli Eswariah v. CGT [1970] 76 ITR 675(SC), (M.K.) Stremann v. CIT [1961] 41 ITR 297 (Mad.). JUDGMENT Desai, J.-In this reference, which is under s. 27(1) of the W.T. Act, 1957, we are concerned with Dr. K.J. Sheth ; he having died at the stage of appeal before the Tribunal, the present respondent has been brought on record as his legal heir. Dr. Sheth was a member of a HUF comprising…

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