By the Court - This reference application as been made under s. 27(3) of the WT Act by CWT, Rajasthan, Jaipur a reference in respect of the following question, which is said to arise out of the of order the ITAT dt. 4-7-1980 :
'Whether on the facts and in the circumstances of the present case the Tribunal was justified in upholding the finding of the AAC that the value of the 10 shop 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 10 shops at Sikar. Rao Raja 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 10 shops were gifted by him to his daughter Smt. Phool Kanwar at the time of her marriage in Samwat 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 of such shops. The WTO rejected the contention of the assessee and held that the assessee was the actual owner of the shops of the relevant valuation date and since the value of the said shops had escaped assessment in the original assessment proceedings, the WTO initiated proceedings under s. 17 of the WT Act and assessed the value of the 10 shops at Rs. 50,00 and added the same to the net wealth of the assessee. On appeal, the AAC of WT, relying upon are lease deed executed on 20-8-1968, by Rajmata Smt. Trilok Rajya Laxmi, as the holder of general power of attorney of the assessee and other documents produced on behalf on the assessee, held that the fact that 10 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 10 shops in question vested in Smt. Phool Kanwar on account of the gift made in favor at the time of her marriage in the year 1927. On the basis of the aforesaid finding the AAC set aside the addition of Rs. 50,000 the net wealth of the assessee for the asst. yr. 1967-68.
3. On appeal by the department, ITO Bombay Bench B (Camp at Jaipur) agreed with the finding arrived at by the AAC 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 dt. 4-7-1980.
4. On the application filed by the CWT under s. 27(1) of the WT Act, the Tribunal held that no question of law arose out of its order pertaining to the asst. yr. 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 asst. yr. 1968-69, whereas the reference application relates to the Wealth Tax Assessment of the assessee pertaining to the asst. yr. 1967-68. However, as the relevant documents were produced by the ld. counsel for the assessee we have proceeded with the hearing of the reference application on the basis thereof.
6. We have gone through orders passed by the AAC of IT dt. 9-5-1979 and by the ITAT, dt. 4-7-1980 which have been produced before us by ld. counsel for the assessee. We find no reason to hold that a question of law arise in the present case. The finding arrived at by the ITAT that the assessee was not the owner of the 10 shops in question of the relevant date was essentially a finding of fact. The AAC as well as the Appellate Tribunal on the basis of evidence on record, have come to conclusion that the assessee Rao Raja Kalyan Singh had gifted the 10 shops in question to his daughter Smt. Phool Kanwar at the time of her marriage and that the 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 essential of fact, no question of law arise in our view. The application for calling for a reference is therefore not maintainable and is dismissed.