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Issues involved:
The judgment involves a reference u/s 27(1) of the Wealth Tax Act, 1957 regarding the inclusion of income of Crown Flour Mills in the net wealth of the assessee company for the assessment year 1958-59. Details of the Judgment: Assessment Year 1958-59: The reference pertains to the assessment of M/s. Meatles Pvt. Ltd. for the assessment year 1958-59. The Tribunal had to decide whether the income of Crown Flour Mills should be included in the net wealth of the assessee company. The Tribunal initially excluded the income of Crown Flour Mills from the assessee's hands in the income-tax assessment for the same year. However, the Department withdrew that ground during the appeal before the Tribunal, maintaining the exclusion of the income. The Tribunal questioned how the Department could now claim to assess the same income as the assessee's wealth for the wealth-tax purposes for the same year. Transfer of Assets: The judgment highlighted the importance of a valid sale deed for the transfer of assets. It was emphasized that the assets of Crown Flour Mills continued to belong to the assessee company as there was no valid transfer of title through a sale deed. Mere acts attributed to the assessee did not extinguish the proprietary rights over the assets. Estoppel and Separate Assessments: The Department argued that the Tribunal should have given an independent finding in the wealth-tax appeal, despite the exclusion of Crown Flour Mills' income in the income-tax assessment. It was clarified that decisions in one assessment year are not binding in subsequent years. The principle of estoppel does not apply to successive assessments, and Revenue Authorities are not bound by previous contentions or decisions. The judgment emphasized that there is no estoppel against a statute, and Revenue authorities can correct mistaken views of statutory provisions in different assessments. Conclusion: Based on the previous decision that the assets of Crown Flour Mills should be included in the net wealth of the assessee company, the excess income after adjusting the loss was deemed to be the assessee's wealth for the assessment year 1958-59. The reference was answered in favor of the Department and against the assessee, with no order as to costs.
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