1974 (9) TMI 10

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..... Yar Jung, filed return of his wealth for the assessment year 1967-68 on November 18, 1967, in the status of individual. He showed a wealth of Rs. 10,08,588 in his return. He died on December 16, 1968, and the assessment proceedings were continued in the names of his legal representatives. The Wealth-tax Officer computed the net wealth of the assessee at Rs. 10,46,338 and made an assessment accordingly on January 9, 1969. It was claimed on behalf of the assessee by his legal representatives, at the time of hearing before the assessing authority that the value of the gifts of immovable properties made by the assessee to his wives prior to April 1, 1964, should be excluded from the computation in view of the proviso to section 4(1)(a). The to .....

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..... wealth-tax assessments. We may, therefore, read the proviso as it stood prior to its amendment and see whether the words for any assessment year commencing after the 31st day of March, 1964 refer to the assessments to be made under the Wealth-tax Act. The proviso reads : " Provided that where the transfer of such assets or any part thereof is either chargeable to gift-tax under the Gift-tax Act, 1958, or is not chargeable under section 5 of that Act, for any assessment year commencing after the 31st day of March, 1964, the value of such assets or part thereof, as the case may be, shall not be included in computing the net wealth of the individual." The object of clauses (i) to (iv) of section 4(1)(a) is to check evasion of wealth-tax b .....

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..... re referable to the assessment to be made under the Wealth-tax Act. They render the provisions of section 4(1)(a) inoperative irrespective of the fact whether the transferred asset was chargeable to gift-tax or not chargeable to gift-tax. The proviso specifies the period of exemption up to 31st March, 1964. Irrespective of the year of the gifts when the assets were gifted, they will not be included in the computation of the net wealth of the individual till the assessment year 1964-65. We are, therefore, of the view that the intention of Parliament was to exempt transfers made under clauses (i) to (iv) of section 4(1)(a) from being computed in the net wealth of the individual up to the wealth-tax assessment year commencing after 31st day of .....

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