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TMI Blog1968 (9) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... d A. N. GROVER. JUDGMENT The judgment of the court was delivered by SHAH J.-- (COMMISSIONER OF WEALTH-TAX v. MUTHUKRISHNA AMMAL). By two agreements dated respectively, January 1, 1943, and January 1, 1945, the respondent, Muthukrishna Ammal, obtained from the Government of India on lease certain salt pans. Each lease was to endure for twenty-five years unless otherwise determined under the covenants of the indenture. The right under the first lease was sublet by the respondent to one K. Nadar in consideration of an annual payment of ₹ 15,000 and the right under the second lease was sublet to Mettur Chemicals Ltd. in consideration of an annual payment of ₹ 18,000. The respondent made a return for the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans was not an asset within the meaning of section 2(e)(v) of the Act and its value was accordingly not liable to be included in the net wealth of the respondent. The Commissioner of Wealth-tax has appealed to this court with certificate granted by the High Court. The provisions of the Wealth-tax Act, 1957, in force at the relevant time, may first be noticed. Section 3 provides : Subject to the other provisions contained in this Act, there shall be charged for every financial year commencing on and from the first day of April, 1957, a tax (hereinafter referred to as Wealth-tax) in respect of the not wealth on the corresponding valuation date of every individual, Hindu undivided family and company at the rate or rates specified i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is consistent with the due performance of this lease...... 23. The lessee shall abide by the decision of the Collector in case of any dispute arising between the lessor and the lessee or of any difference of opinion as to the interpretation of the terms of this lease or the obligations thereunder and such decision shall be final and binding on the lessee. 24. Subject to the foregoing conditions the lessee shall continue to enjoy the leased land undisturbed for a said term of twenty-five years. In case, however, there is any breach of any of the above conditions or the lessee delays payment of any sum due to the lessor for over two months from the date of its falling due or in case the licence granted under clause 9 above is cancelle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of section 2(e). We are unable to agree with that contention. The expression used by Parliament is is available to an assessee for a period not exceeding six years , and it must mean that the assessee, though he has interest in property at the valuation date, the interest will remain available for a period not exceeding six years. If it is to remain available for six years or for a shorter period the interest will fall within the exception : if it is to remain available for a period exceeding six years it will fall within the definition of assets and its value will be liable to be included in the net wealth of the assessee. The terms of section 4 of the Wealth-tax Act also throw some light on the problem. That section prescribes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the lease would have been liable to be included in the net wealth of the transferor. We see no reason to hold that because the transferor is the Government, any different rule will apply. Counsel for the revenue invited our attention to the amendment made in the Act by the Wealth-tax (Amendment) Act, 1964, in the definition of the word assets in section 2(e) of the Act. Relying upon the clause added by the amending Act from the date the interest vests in the assessee after the expression six years in section 2(e)(v), counsel contended that this was intended to be a parliamentary exposition of the meaning of the original clause. We do not think that any such intention appears from the terms of the clause. Assuming that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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