Law:

Section:

Section 2(e) of the Wealth-tax Act, 1957-Assets-Property of every description-Assesses, partner in a firm, introduced bungalow owned by him into firm as his capital contribution where upon his capital account was credited with Rs. 1,50,000-Firm showed bungalow in its balance sheet as an asset-Whether value of bungalow includible in assessee's net wealth on the relevant valuation date-Held, on facts, no Facts The assessee, who was partner in a firm, introduced into the firm a bungalow owned by him by way of his capital contribution to it. Consequently, his account with the firm was credited with a sum of Rs. 1,50,000 and this property was shown in the balance sheet of the firm as an asset belonging to the firm. The Tribunal held that the assessee was not under an obligation to include the value of the bungalow in his net wealth, because the said property was not the property of the assessee and that he held the same on behalf of the firm on the relevant valuation date. On reference : Held As the bungalow was capital contribution made by the assessee to the firm, it ceased to be the property of the assessee and became the property of the firm inasmuch as it stood transferred to the firm. Accordingly, the value of the bungalow was not includible in the net wealth of the assessee on the relevant valuation date. Case review CIT v. Kartikeya V. Sarabhai [1981] 131 ITR 42 (Guj.) followed . Section 2(e) of the Wealth-tax Act, 1957-Assets-Property of every description-Assessed owning two palaces entered into agreements for sale thereof-He received part of consideration money and handed over possession of properties to purchasers before relevant valuation dates-Purchasers completed payment and assessee executed conveyance deeds after valuation dates-Whether assessee continued to be legal owner of properties on relevant valuation dates and was rightly assessed to wealth-tax in respect of their value-Held, on facts, yes-Whether having agreed to sell said properties and put purchasers in possession thereof, only asset left with assessee was right to receive unpaid price on relevant valuation dates which was non-urban immovable asset-Held, on facts, no. Facts The assessee…

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