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Commissioner of Wealth-tax Vs. Rao Raja Kalyan Singh (Decd.) (by Legal Heir, Vikram Singh) - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtRajasthan High Court
Decided On
Case NumberD.B. Wealth-tax Reference Application No. 162 of 1981
Judge
Reported in[1987]163ITR411(Raj)
ActsWealth Tax Act, 1957 - Sections 27(3)
AppellantCommissioner of Wealth-tax
RespondentRao Raja Kalyan Singh (Decd.) (by Legal Heir, Vikram Singh)
Appellant Advocate R.N. Surolia, Adv.
Respondent Advocate V.K. Singhal, Adv.
Excerpt:
- - 50,000 to the net wealth of the assessee for the assessment year 1967-68. 3. on appeal by the department, the income-tax appellate tribunal, bombay bench 'b' (camp at jaipur), agreed with the finding arrived at by the appellate assistant commissioner and observed that the reasons given by him in support of his finding clearly pointed out that the ten shops in question were gifted by rao raja kalyan singh to his daughter, smt. the appellate assistant commissioner as well as the appellate tribunal, on the basis of evidence on record, have come to the conclusion that the assessee, rao raja kalyan singh, had gifted the ten shops in question to his daughter, smt......of her marriage in samvat year, 1984, corresponding to the year 1927 a.d. and that since then, the shops in question belonged to smt. phool kanwar and she realised rent from those shops. the wealth-tax officer rejected the contention of the assessee and held that the assessee was the actual owner of the shops on the relevant valuation date and since the value of the said shops had escaped assessment in the original assessment proceedings, the wealth-tax officer initiated proceedings under section 17 of the wealth-tax act and assessed the value of the ten shops at rs. 50,000 and added the same to the net wealth of the assessee. on appeal, the appellate assistant commissioner of wealth-tax, relying upon a release deed executed on august 20, 1968, by rajmata smt. trilok rajya laxmi, as the.....
Judgment:

1. This reference application has been made under Section 27(3) of the Wealth-tax Act, 1957, by the Commissioner, Wealth-tax, Rajasthan, Jaipur, seeking a reference in respect of the following question which is said to arise out of the order of the Income-tax Appellate Tribunal, dated July 4, 1980 :

'Whether, on the facts and in the circumstances of the present case, the Tribunal was justified in upholding the finding of the Appellate Assistant Com-missioner that the value of the ten shops amounting to Rs. 50,000 was not includible in the net wealth of the assessee ?'

2. The facts which have given rise to this application may be briefly stated. Late Rao Raja Kalyan Singh of Sikar was the owner of ten shops at Sikar. RaoRaja Kalyan Singh, since deceased, is represented by his legal heir, Vikram Singh, in these proceedings. The case of the assessee, Rao Raja Kalyan Singh, , was that the said ten shops were gifted by him to his daughter, Smt. Phool Kanwar, at the time of her marriage in Samvat year, 1984, corresponding to the year 1927 A.D. and that since then, the shops in question belonged to Smt. Phool Kanwar and she realised rent from those shops. The Wealth-tax Officer rejected the contention of the assessee and held that the assessee was the actual owner of the shops on the relevant valuation date and since the value of the said shops had escaped assessment in the original assessment proceedings, the Wealth-tax Officer initiated proceedings under Section 17 of the Wealth-tax Act and assessed the value of the ten shops at Rs. 50,000 and added the same to the net wealth of the assessee. On appeal, the Appellate Assistant Commissioner of Wealth-tax, relying upon a release deed executed on August 20, 1968, by Rajmata Smt. Trilok Rajya Laxmi, as the holder of general power of attorney of the assessee, and other documents produced on behalf of the assessee, held that the fact that the ten shops in question were gifted by late Rao Raja Kalyan Singh to Smt. Phool Kanwar at the time of her marriage in the year 1927 was proved and that the title in respect of the ten shops in question vested in Smt. Phool Kanwar on account of the gift made in her favour at the time of her marriage in the year 1927. On the basis of the aforesaid finding, the Appellate Assistant Commissioner set aside the addition of Rs. 50,000 to the net wealth of the assessee for the assessment year 1967-68.

3. On appeal by the Department, the Income-tax Appellate Tribunal, Bombay Bench 'B' (camp at Jaipur), agreed with the finding arrived at by the Appellate Assistant Commissioner and observed that the reasons given by him in support of his finding clearly pointed out that the ten shops in question were gifted by Rao Raja Kalyan Singh to his daughter, Smt. Phool Kanwar, at the time of her marriage in the year 1927 and were received by her and further that Smt. Phool Kanwar was in possession of the said property since then. The Appellate Tribunal held that the rent receipts and the release deed and the affidavit filed on behalf of the assessee led to the conclusion that Smt. Phool Kanwar was the owner of the shops in question since they were gifted to her by her father at the time of her marriage and that the assessee was not the owner of the said shops on the relevant valuation date. In view of the aforesaid finding, the appeal filed by the Department was dismissed by the Appellate Tribunal by its order dated July 4, 1980.

4. On the application filed by the Commissioner of Wealth-tax under Section 27(1) of the Wealth-tax Act, the Tribunal held that no question of law arose out of its order pertaining to the assessment year 1967-68, as the finding arrived at by the Tribunal was purely a finding of fact. In this view of the matter, the Tribunal refused to make a reference to this court.

5. It may be observed that the Department has annexed documents with the reference application which relate to the assessment year 1968-69, whereas the reference application relates to the wealth-tax assessment of the assessee pertaining to the assessment year 1967-68. However, as the relevant documents were produced by the learned counsel for the assessor, we have proceeded with the hearing of the reference application on the basis thereof.

6. We have gone through the orders passed by the Appellate Assistant Commissioner of Income-tax dated May 9, 1979, and by the Income-tax Appellate Tribunal dated July 4, 1980, which have been produced before us by learned counsel for the assessee. We find no reason to hold that a question of law arises in the present case. The finding arrived at by the Income-tax Appellate Tribunal that the assessee was not the owner of the ten shops in question on the relevant date was essentially a finding of fact. The Appellate Assistant Commissioner as well as the Appellate Tribunal, on the basis of evidence on record, have come to the conclusion that the assessee, Rao Raja Kalyan Singh, had gifted the ten shops in question to his daughter, Smt. Phool Kanwar, at the time of her marriage and that she was receiving the rents and profits in respect of said shops ever since her marriage. The finding arrived at by the Tribunal being one essentially of fact, no question of law arises in our view. The application for calling for a reference is, therefore, not maintainable and is dismissed.


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