Court : Andhra Pradesh
Reported in : (1988)73CTR(AP)251; [1988]174ITR612(AP)
..... the income-tax appellate tribunal has made this reference under section 27(1) of the wealth-tax act, 1957, at the instance of the commissioner of wealth-tax. ..... the question referred for the consideration of this court is : 'whether, on the facts and in the circumstances of the case, the tribunal was right in holding that the assessee was entitled to the benefit of section 5(1)(xxxii) of the wealth-tax act in respect of the assessee's interest in the assets of venugopal rice mills which has been leased out ?' 2. ..... we may notice the exemption provided by section 5(1)(xxxii) of the act, which is in the following terms : '5(1) subject to the provisions of sub-section (1a), wealth-tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee ... ..... the assessee filed his wealth-tax return for the assessment year 1974-75 declaring his net wealth which included interest in a partnership firm known as venugopal rice mills. ..... aggrieved by the order of the tribunal, the commissioner of wealth-tax sought and obtained reference of the above question of law for the consideration of this court. 3. ..... the matter was carried in appeal to the appellate assistant commissioner of wealth-tax, but without success. ..... the wealth-tax officer rejected the claim for exemption on the ground that the firm was defunct and no business was carried on during the previous year relevant to the assessment year 1974-75. .....
Tag this Judgment!Court : Andhra Pradesh
Reported in : [1970]77ITR180(AP)
..... this case was referred under section 27(1) of the wealth-tax act of 1957 (hereinafter referred to as 'the act') with regard to wealth-tax assessment of one nawab farced nawaz jung for the assessment years 1957-58 and 1958-59 and the question we are called upon to decide is as follows : 'whether the sums of rs. ..... this interest of the assessee in the trusts was claimed by the assessee as in the nature of 'annuity' within the meaning of the provision contained in section 2(e)(iv) of the act and, therefore, the right of the assessee in the trust properties has to be exempted from his assets and, therefore, from his net wealth for the purpose of charging wealth-tax as provided under section 3 of the act. ..... derived from the properties mentioned in the schedules 1 and 2 should be paid to the settlor (assessee) for his life and thereafter the net income should go to his daughters and grand-children and with regard to the propertiesmentioned in schedules 3 and 4 the net income thereof should be paid to the settlor for a period of 14 years and after 14 years or the death of the settlor whichever event happens first the trustees should hand over those .....
Tag this Judgment!Court : Allahabad
Reported in : [1977]110ITR902(All)
..... word 'debt'; (ii) that 'debt owed' within the meaning of section 2(m) of the wealth-tax act, 1957, could be defined as the liability to pay in praesenti or in futuro an ascertainable sum of money ; (iii) that the charging section for the purposes of income-tax was section 3 of the indian income-tax act, 1922, and the annual finance acts only gave the rate for quantification of the tax ; (iv) that a liability to pay income-tax was a present liability though the tax became payable after it was quantified in accordance with ascertainable ..... the question was whether that amount was a 'debt owed' within the meaning of section 2(m) of the wealth-tax act, 1957, as on march 31, 1957, which was the valuation date, and, as such, deductible in computing the net wealth of the assessee-company. ..... this reference under section 27(3) of the wealth-tax act, 1957, raises an interesting question of law. ..... under section 3 of the wealth-tax act, wealth-tax is payable by a person for every financial year on his net wealth on the corresponding valuation date. ..... by such a disclosure an assessee does not incur a liability to pay any tax under this section, and, therefore, the amount of tax is not a debt owed by him on the valuation date for the purposes of determining net wealth under the wealth-tax act. ..... in the wealth-tax returns for the years 1960-61 and 1961-62, he included in his net wealth a sum of rs. .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : [1997]223ITR317(MP)
..... this is a reference under section 27(1) of the wealth-tax act, 1957 (hereinafter referred to as 'the act'), made by the tribunal at the instance of the assessees and the following two questions have been referred, for answer, to this court by the tribunal, which read as under :' (1) whether the tribunal did ..... 's share in this provision was taxed accordingly and the tax liability under the wealth-tax act was worked out and no rebate of this debt owed under section 2(m)(iii) of the wealth-tax act was given.6. ..... has failed to produce before the authorities the material to show that the assessee-firm really owed this debt for payment under the bidi and cigar act and also under the bonus act, then it is open for the authority under the wealth-tax act to examine the matter factually that the assessee-firm is-entitled to the benefit of this rebate as debt owed under both these enactments and on their factual enquiry ..... hanif and consequently including in the net wealth of the assessee his proportionate entitlement in the ..... that if that has accrued and is owed by the assessee, then on the valuation date, the assessee-firm is entitled to rebate of this tax from his net wealth. ..... the department has not woken up to its responsibility that does not mean that the assessee is entitled to escape the net of liability under the wealth-tax act. ..... the legal proposition is concerned, there is consensus opinion of the high courts that the assessee is entitled to such rebate of debts due from net wealth. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1994SC600; [1992]196ITR128(SC); JT1992(4)SC430; 1992(1)SCALE1131; 1992Supp(3)SCC124
..... these appeals are directed against order of the orissa high court which decided the wealth tax reference under section 27(1) of the wealth tax act, 1957 in favour of the department. ..... to examine the correctness of it section 2(m) of the wealth tax act is extracted below:net wealth' means the amount by which the aggregate value computed in accordance with the provisions of this act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this act, is in excess of the aggregate value of all the debts owed by the assessee on the valuation date other than, - (i) debts which under section 6 are not to be taken into ..... in wealth tax assessments for the years 1962-63 to 1965-66 the assessee disputed his liability in view of the judgment given by this court in 1958 and claimed that it being a debt within meaning of sub-section (m) of section 2 of the wealth tax act the amount was liable to be deducted while computing his net wealth. ..... it was held that it was not possible to accept the claim of the department that the net wealth for purposes of section 2(m) was the tax liability disclosed by an assessee in his return. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1986SC959; [1985]156ITR525(SC); 1985(2)SCALE687; (1985)4SCC608; [1985]Supp3SCR565; 1986(1)LC674(SC)
..... the common question of law that arises for our determination in these appeals is:whether on the facts and in the circumstances of the case, the right or interest of an assessee in an annuity policy is exempt from wealth tax under section 5(1)(vi) of the wealth tax act, 1957?2. ..... the wealth tax officer rejected the claim and included the above mentioned amounts in the assessees' net wealth for the concerned assessment years on the ground that the exemption was allowable only to insurance policy whereas the policy taken out by the assessee was an annuity policy whereunder the assessee had made lumpsum payment and he would be getting periodical returns after the lapse of a number of years and as such annuity policy could not be ..... under the charging provision contained in section 3 of the act wealth tax is charged, subject to the other provisions contained in the act, for every assessment year in respect of the net wealth on the corresponding valuation date of every individual, hindu undivided family and company, at the rate or rates specified in schedule ..... and payable to the assessee:provided that in the case of a policy of insurance the premium or other payment whereon is payable during a period of less than ten years, the amount that shall not be included in the net wealth of the assessee under this clause shall be a sum that bears to the value of the right or interest of the assessee in the policy the same proportion as the number of years during which the premium or other payment .....
Tag this Judgment!Court : Supreme Court of India
Reported in : (1989)75CTR(SC)194; 1989(40)ELT239(SC); [1989]176ITR98(SC); JT1989(1)SC92; 1989(1)SCALE85; 1989Supp(2)SCC43; [1989]1SCR155; 1989(1)LC383(SC)
..... question of law was referred to the high court for its opinion: whether, on the facts and in the circumstances of the case, the assessee was entitled to exclude, under the proviso to section 4(1)(a) of wealth tax act, 1957, the value of the assets gifted to his wives in the wealth-tax assessment for the assessment year 1967-68?the high court agreed with the construction placed on the proviso by the tribunal and answered the question in the affirmative and against ..... transfer of such assets or any part thereof is either chargeable to gift-tax under the gift-tax act 1958 (18 of 1958), or is not chargeable under section 5 of that act, for any assessment year commencing after the 31st day of march 1964 [but before the 1st day of april, 1972], 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 words 'but before the 1st day april ..... section 4(1)(a) aims at foiling an individual's' attempt to avoid or reducing the incidence to wealth tax by transferring the assets to or for the benefit of the spouse or the minor child of the individual by requiring the inclusion of such transferred assets in computing the net wealth of the individual.however, the proviso makes the provision inoperative where and in so far as the transferred asset is either chargeable to gift tax under or is exempt under section 5 of the gift-tax act. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1965SC1387; [1965]56ITR224(SC); [1965]2SCR355
..... the common question of law which this group of six appeals raises for our decision is whether section 3 of the wealth-tax act, 1957 (no. ..... section 3 of the act provides that subject to the other provisions contained in this act, there shall be charged for every financial year commencing on and from the first day of april, 1957, a tax (hereinafter referred to as wealth-tax) in respect of the net wealth on the corresponding valuation date of every individuals, hindu undivided family and company at the rate or rates specified in the schedule. ..... 27 of 1957) (hereinafter called 'the act') in so far as it purports to levy a charge of wealth tax in respect of the net wealth of a hindu undivided family at the specified rate, is valid. ..... commissioner of income-tax, : [1957]32itr615(sc) the question which arose for the decision of this court had relation to the construction of section 16(3) of the indian income-tax act. ..... sen, appellate assistant commissioner of income-tax, bombay : [1965]56itr198(sc) , when this court had occasion to consider the validity of section 12(ib) read with section 2(6a)(e) of the indian income-tax act, 1922 (no, 11 of 1922) as it stood in 1955; the question which was raised for its decision was whether it was competent to parliament to treat a loan advanced to a shareholder of a company as his income. ..... the act was passed in 1957 to provide for the levy of wealth tax. ..... section 3 of the indian income-tax act, 1922 (no. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1966SC995; [1966]59ITR569(SC)
..... referred to the high court by the appellant tribunal under section 27 of the wealth-tax act, 1957 (xxvii of 1957). ..... section 2(m) of the wealth-tax act defines 'net wealth' as follows : ''net wealth' means the amount by which the aggregate value computed in accountable with the provisions of this act of all the assets wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this act, is in excess of the aggregate value of all the debts owed by the assessee on the valuation date other than - (i) debts which under section 6 are not to be taken into ..... with the second question which reads as follows : 'whether, on the facts and in the circumstances of the case, in computing the net wealth of the assessee, the arrears of tax as determined as per notice under section 18a of the indian income-tax act for the two assessment years under the section consideration constitute a debt owed by the assessee within the meaning of section 2(m) of wealth-tax act as on the valuation date ?' 2. ..... section 3 is the charging section, which reads as follows : 'subject to the other provisions contained in this act there shall be charged for every financial year commencing on and from the first day of april, 1957, a tax (hereinafter referred to as wealth-tax) in respect of the net wealth on the corresponding valuation date or every individuals, hindu undivided family and company at the rate or rate specified in .....
Tag this Judgment!Court : Delhi
Reported in : ILR1970Delhi267
..... 6,13,614.00 claimed by the assessed in the assessment year 1957-58 is a 'debt owed', within the meaning of section 2(m) of the wealth-tax act, 1957, on the relevant valuation date (ii) whether on the facts and circumstances of the case, the investment of rs. ..... 8 of 1968 under section 27(1) of the wealth- tax act, 1957 (27 of 1957) (hereinafter referred to as the act) :- '(i)whether on the facts and circumstances of the case, the excise duty of rs. ..... 23,98,742.00 for the assessment year 1958-59 was a debt owed within the meaning of section 2(m) of the wealth-tax act, 1957 ? ..... other than,- (i) debts which under section 6 are not to be taken into account; (ii) debts which arc secured on, or which have been incurred in relation to, any property in respect of which wealth-tax is not chargeable under this act; and (iii) the amount of the tax, penalty or interest payable in consequence of any order passed under or in pursuance of this act or any law relating to taxation of income or profits, or the estate duty act, 1953, the expenditure-tax act, 1957, or the gift-tax act, 1958,- (a) which is outstanding on the ..... according to that section, subject to the other provisions contained in the act, there shall be charged for every assessment year commencing on and from the first day of april, 1957, a wealth tax in respect of the net wealth on the corresponding valuation date of every individual, hindu undivided family and company at the rate or rates specified in the schedule. .....
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