Law:

Section:

Section 4(1)(a)(iv) of the Wealth-tax Act, 1957 - Deemed wealth - Whether amount transferred by assessee to a trust for his would-be wife and later handed over by trust to lady who subsequently became assessee's wife was not hit by section 4(1)(a)(i) -Held, no - Whether even if such trust deed contemplated that handing over of funds to assessee's wife would be only after marriage, once factum of payment was admitted to be before marriage provisions of section 4(1) (a) (i) would not apply - Held, yes Section 27(3) of the Wealth-tax Act, 1957 - Reference - Question of fact - Whether in view of facts stated under the head "Deemed wealth" any question of law arose from Tribunal's order - Held, no Facts The assessee transferred certain amount to a trust created on 24-11-1969 for his would-be wife, namely, 'G', and the said amount was later handed over by the trust to 'G' who subsequently became the assessee's wife in 1972. In the relevant assessment year, the WTO held that the said amount was hit by section 4(1)(a)(i ). On appeal, the Tribunal, however, following the Supreme Court's decision in Philip John Plasket Thomas v. CIT [1963] 49 ITR 97 , accepted the assessee's contention that since the gift took place before the marriage, section 4(1)(a)( i) was not attracted to the assessee's case. The Tribunal also rejected the revenue's application for reference under section 27(1). On application under section 27(3), the revenue pointed out that in the present case trust deed contemplated the handing over of the funds only after the marriage and, therefore, as per the terms of the trust deed, the funds would become the property of G only after the marriage with the assessee and not before that : Held In the instant case, there had been the transfer of the funds to G before she became the wife of the assessee. No doubt, on the relevant date, G held the funds as the wife of the assessee but the relevant date to be taken into account, as pointed out by the Supreme Court in the case of Philip John Plasket Thomas v. CIT [1963] 49 ITR 97 , is the date when the transfer was made, not when the marriage actually took place. It was also not relevant to consider whether there was…

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