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TMI Blog2005 (8) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... HTA., MS. H. N. DEVANI. JUDGMENT The judgment of the court was delivered by D. A. Mehta J.- The Income-tax Appellate Tribunal, Ahmedabad Bench "B", has referred the following question under section 27(3) of the Wealth-tax Act, 1957, at the instance of the Commissioner of Wealth-tax. "Whether, in law and on facts, the Appellate Tribunal is right in holding that wealth-tax cannot be levied on the assessee in respect of any portion of the compensation in excess of her 1/9th share which she had received during the assessment year in question?" The assessment years are 1975-76 to 1981-82 and the relevant valuation dates are March 31, 1975 to March 31, 1981, respectively. The assessee, an individual, was owner of a certain immovable pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charged to tax, on interest on the full amount of compensation, and thirdly, for the assessment year 1971-72 gift-tax proceedings had been initiated. However, the assessee had succeeded before the Tribunal in gift-tax proceedings and it was held that there was no gift of the immovable property. He, therefore, submitted that the immovable property continued to be of the assessee and was converted into a right to receive compensation when the land was acquired. That such right to receive compensation belonged to the assessee in the absence of any valid throwing in the hotchpot of the Hindu undivided family in the absence of actual transfer there being no conveyance. Lastly, it was submitted that for the assessment years 1971-72 to 1974-75 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 73 to 1974-75 it would not create any liability to tax in the years under consideration if there was no basis for taxing the assessee. The charge of wealth-tax under the Act is fastened by virtue of the provision of section 3 of the Act. It is provided by the said section that wealth-tax in respect of the net wealth on the corresponding valuation date is leviable at the rate or rates specified in the schedule. The term "net wealth" has been defined by section 2(m) of the Act to mean the amount by which the aggregate value of all the assets, wherever located, belonging to the assessee on the valuation date, exceeds the aggregate value of all the debts owed by the assessee on the valuation date. For the present it is not necessary to refer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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