Wealth-tax on stock-in-trade motor cars applied under the then-existing text, with remand limited to sales and valuation facts.

Motor cars held as stock-in-trade were treated as includible in net wealth for the relevant assessment year because the unamended statutory text specifically brought motor cars within wealth-tax and the later exclusion of stock-in-trade was not retrospective. The main issue was therefore decided in favour of the Revenue. On the separate factual question, the record had not been examined as to whether some cars were actually sold during the year and what value should be excluded for cars no longer in stock, so the matter was remitted for limited re-determination of sales and valuation.

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Issues: (i) Whether motor cars held as stock-in-trade were includible in net wealth under section 40(3)(vii) of the Finance Act, 1983 for the assessment year 1984-85; (ii) whether the matter required remand for determining the cars actually sold during the year and the value attributable to the cars remaining in stock.

Issue (i): Whether motor cars held as stock-in-trade were includible in net wealth under section 40(3)(vii) of the Finance Act, 1983 for the assessment year 1984-85.

Analysis: The provision as it stood for the relevant assessment year specifically brought motor cars within the assets chargeable to wealth-tax. The later amendment excluding stock-in-trade was not retrospective. The plain language of the provision did not permit exclusion of stock-in-trade from the taxable assets for that year.

Conclusion: The value of motor cars held as stock-in-trade was includible in net wealth for the assessment year in question, and the issue was answered in favour of the Revenue.

Issue (ii): Whether the matter required remand for determining the cars actually sold during the year and the value attributable to the cars remaining in stock.

Analysis: The Commissioner and the Tribunal had not examined the factual claim that some cars were sold during the assessment year and that the value of such cars should be excluded. That factual controversy required determination on the record.

Conclusion: The matter was remitted to the Tribunal for fresh determination of the cars held for sale and the value to be excluded on account of actual sales and receipt of full value during the year.

Final Conclusion: The main question was decided in favour of the Revenue, but the assessment was sent back for limited factual re-examination on the extent of cars sold and the consequential valuation.

Ratio Decidendi: A provision imposing wealth-tax on specified assets must be applied according to its plain language for the relevant assessment year, and a subsequent non-retrospective amendment cannot be used to exclude stock-in-trade unless the unamended text itself permits such exclusion.

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