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TMI Blog1982 (8) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... tes in the wealth-tax returns filed as required by section 4(1)(a) of the Wealth-tax Act, 1957 ('the Act'). However, in the course of the assessment proceedings, it was claimed that the value of gifted property as on the date of transfer should only be included in the five wealth-tax assessments. The WTO rejected the claim by observing that value of the transferred asset, whether it is held in its original form or in any other form, was includible in the net wealth as on the valuation date under the provisions of the Act. The assessee went in appeal to the AAC who taking note of the Bombay High Court decision in Kishanlal's case accepted the assessee's contention and held that the value which the asset carried as on the valuation date relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le preparing the head note. To highlight our point, we quote : ". . .The words 'such assets' really indicate and pinpoint the specific assets which have been transferred. That such was the intention is made very clear by the latter part of this section because it says 'whether the assets referred to in any of the sub-clauses aforesaid are held in the form in which they were transferred or otherwise'. The object of this latter part of the section is that regard is to be had to the valuation of the original assets irrespective of the fact whether the original assets are retained in the form in which they are transferred or they are converted into different types of sets. In either case, it is the value of the assets that are transferred tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to consideration for purposes of section 4(1)(a)(iii) . . . ." The complete sentence in the High Court judgment has been split into two and thereby the context has got lost. It is the second sentence in the head note quoted above which appears to have caused the misunderstanding to the AAC. He lost sight of the fact that the observations of the High Court were only when the asset originally transferred was converted into a different asset. If the complete report had been gone into and the full extract quoted above was read, the conclusion which the AAC had drawn could not be there. The Bombay High Court after analysing the relevant provisions itself had observed that ". . . it is quite clear from the definition of the expression 'net weal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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