9911796707
TMI Blog1990 (12) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... er, on the facts and in the circumstances of the case, the Appellate Tribunal was legally justified in its opinion that the addition made by the Wealth-tax Officer for the sustained cash credit as part of the assessee's wealth treating them as asset is incorrect ?" For the sake of convenience, we may refer to the facts in W. T. R. No. 69 of 1979. The assessee is a Hindu undivided family. Sri Harish Chandra Agrawal is its karta. As karta of this Hindu undivided family, he was a partner with 1/5th share in the aforesaid firm, M/s. Chittermal Ramdayal, Agra. For the assessment years 1964-65 to 1969-70, the wealth of the assessee was assessed under the provisions of the Wealth-tax Act. The share of the Hindu undivided family in the afores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, had observed that the validity of the said additions would depend upon the final view taken in the income-tax assessment. By the date of the Tribunal's order, those incometax appeals were disposed of by the Tribunal. In those orders (under the Income-tax Act), the Tribunal held that a major portion of the credits appearing in the books for the assessment year 1964-65 were genuine. However, with respect to certain other credits, the Tribunal held that they were not proved. In this connection, the Tribunal referred to the following facts : In the first instance, the creditors (depositors) admitted that the amount belonged to them but after raids were conducted on their premises, they came forward with a denial. The Tribunal chose to acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sal of the partners and so long as that is not done, those amounts or any portion thereof cannot be taken into account while valuing the assessee's share in the said firm. It is also argued that just because certain amounts are available on a particular valuation date, it cannot be presumed that they continue to be available on each of the subsequent valuation dates concerned herein. The mode of valuation of a partner's interest/share in a partnership firm is prescribed by rule 2 of the Wealth-tax Rules, read with section 4(1)(b) of the Act. Rule 2 says that, for valuing the interest of a partner, the net wealth of the firm must be determined first and, out of that, the amount of capital contributed by the partners shall be deducted and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r's interest in a partnership firm. If such a dissolution is effected on the valuation date, the partner would also get a share in the amounts in question as well. Learned counsel for the assessee relied upon a decision of the Kerala High Court in Annamma Paul Perincherry v. CWT [1973] 88 ITR 204. It was held in that case that it cannot be presumed that a particular income which was brought to tax during three assessment years in the hands of the assessee continued to be available as his wealth during three subsequent assessment years. It must be noticed that the assessment years concerned under the Wealth-tax Act in that case were 1961-62 and 1962-63. In the income-tax assessments for the assessment years 1957-58, 1958-59 and 1959-60, ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
