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Section 4 of the Wealth-tax Act, 1957 - Deemed wealth - Assessee-HUF contended that there was partial partition of HUF in which some amount was given to 'B', mother of karta - B gave certain gifts to her minor grandchildren which were invested in certain firms - Whether Tribunal was right in assessing assets given to B in hands of assessee-HUF on ground that partition was sham and bogus - Held, yes - Whether Tribunal was right including gifts to minor grandchildren and income therefrom in hands of assessee-HUF - Held, no FACT The assessee-HUF contended that there was a partial partition of the HUF, in which some amount was given to 'B', mother of the karta of the HUF. The assessee also claimed that B had made certain gifts to her minor grandchildren and the amount of gift was invested in certain firms. The WTO found that the partition was sham and bogus and accordingly the wealth standing in the name of 'B' was assessed in the hands of the assessee-HUF. The WTO also added the value of the assets gifted by B to her minor grandchildren and income thereon in the hands of the assessee-HUF. On appeal this was upheld by the AAC and the Tribunal. On reference : HELD In the reference under the Income-tax Act, 1961, it was held by this Court that the assets alleged to have been given to B continued to belong to the assessee-HUF. It was further held that the gifts made to the minor grandchildren, having not found to be genuine, the Tribunal was not justified in holding that the income of the minor grandchildren was liable to be included in the hands of the assessee-HUF. It was conceded at the time of hearing that the answer to the question referred to this Court under the Wealth-tax Act in the instant case should be the same as given in s disposing of references under the Income-tax Act. Accordingly, the assets given to B must be taken as belonging to the assessee-HUF but gifts made by her to her grandchildren and income thereon could not be treated as the assessee's wealth. Chaphekar for the Applicant. V.S. Samvatsar for the Respondent. ORDER Sohani, Actg. CJ. - By this reference under section 27(1) of the Wealth-tax Act, 1957 ('the Act'), the Tribunal, Indore Bench has…

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