Law:

Section:

Section 2(e) , read with section 4 of the Wealth-tax Act, 1957 - Assets - Assessment year 1959-60 - Assessee obtained certain salt pans on leave from Government - Each lease was to endure for twenty five years unless otherwise determined under covenants of indenture - Later right under said lease was sublet by assessee to someone for a consideration - In assessment WTO held that value of interest of assessee in salt pans for unexpired period of lease was liable to be included in computation of her net wealth - High Court agreed with Tribunal that that interest of assessee in salt pans was not an asset as interest of assessee in land was not available to her for a period exceeding six years - Whether since interest of lessee under each lease was precarious and it was liable to be determined by notice by Government at expiry of any manufacturing reason, leasehold interest in salt pans was not available to assessee for a period exceeding six years from valuation date - Held, yes - Whether therefore there was no infirmity in finding of High Court - Held, yes FACTS By two agreement dated respectively 1-1-1943 and 1-1-1945, the assessee obtained from the Government of India on lease certain salt pans. Each lease was to endure of twenty-five years unless otherwise determined under the covenants of the indenture. The right under the first lease was sublet by assessee to one 'K' in consideration of an annual payment of Rs. 15,000 and the right under the second lease was sublet to 'M' Ltd. in consideration of an annual payment of Rs. 18,000. The assessee made a return for the assessment year 1959-60 showing net wealth of Rs. 3,000 in India and Rs. 2,64,500 in foreign countries. The WTO held that the value of the interest of the assessee in the salt pans for the unexpired period of the two leases was liable to be included in the computation of her net wealth. Valuing the leaseholder's interest in the salt pans at the average rate of income received for the last three years, for the unexpired terms, the WTO brought to tax in addition to the net wealth returned by the assessee an aggregate amount of Rs. 1,89,330. The order was confirmed by the AAC. But the Tribunal held…

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