1987 (1) TMI 152 - AT - Wealth-tax

Summary

Issues:
1. Inclusion of gold jewellery in the assessee's net wealth.
2. Addition of interest on gold bonds in the assessee's income.

Issue 1: Inclusion of Gold Jewellery:
The appeals revolve around the inclusion of gold jewellery found in the assessee's residential premises in their net wealth. The jewellery was seized by Customs authorities, and the assessee claimed it belonged to the late Rajmata Nand Kuwarbai and was gifted to family members. The ld. AAC rejected this claim, citing a Tribunal Bombay order from a previous case. The assessee relied on judgments from Distt. Judge, Datia, but the ld. AAC dismissed them as lacking documentary evidence. The appeals challenge the ld. AAC's decision, arguing that the deceased assessee's Will did not mention the jewellery, implying it did not belong to him. However, the Revenue contends that the Will of 1972 did not negate the father's Will from 1941, which bequeathed the jewellery to the assessee. The Tribunal upheld the ld. AAC's decision, stating the 1972 Will was irrelevant as it postdated the jewellery's seizure in 1963. The omission of the jewellery from the Will did not disprove ownership, as it devolved from the father's Will. Thus, the Tribunal upheld the ld. AAC's decision.

Issue 2: Addition of Interest on Gold Bonds:
The second dispute concerns the addition of interest on confiscated gold bonds to the assessee's income. The gold bonds were confiscated after the valuation date of 31st March 1979. The assessee argued that since the bonds were confiscated, no interest accrued to them. The Revenue countered that the confiscation postdated the valuation date, so the interest till 31st March 1979 belonged to the assessee. The ld. AAC supported this view, stating that the bonds were held by the High Court Registrar on behalf of the appellant, indicating continued ownership. The Tribunal concurred with the ld. AAC, affirming that the assessee remained the owner of the bonds till 31st March 1979, and the accrued interest was rightfully included in their net wealth. Consequently, the appeals were dismissed.

This judgment clarifies the legal intricacies surrounding the inclusion of assets in an individual's net wealth and the treatment of interest on confiscated bonds. The Tribunal's decision emphasizes the importance of documentary evidence and legal precedence in determining ownership and income inclusion for tax assessment purposes.