Kolkata Court March 1982 Judgments

Commissioner of Wealth-tax Vs. Babulal Jatia (Deceased) (Thro L/H, Ram ...

Court: Kolkata

Reported in: [1982]137ITR540(Cal)

Sabyasachi Mukharji, J.1. This is a reference under Section 27(1) of the W.T. Act, 1957. The following question has been referred to us :'Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the shares valued at Rs. 6,89,714 should be excluded from the net wealth of the assessee for the assessment year 1958-59?'The assessment year is 1958-59, for which the valuation date is 12th October, 1958. The assessee gifted shares valued at Rs. 6,89,714 to Shri Mahesh Kumar Jatia, grandson of the assessee. The gift was made on 10th November, 1956, and a trust deed was executed on 8th July, 1957. The transfer of the shares has been registered in the name of Mahesh Kumar Jatia in 1958 which falls after the valuation date. It is significant, therefore, to note that both 10th November, 1956, and 8th July, 1957, fall before the valuation date. In the register of members of the company the change of shareholding occurred after the valuation date in 1957. Th...