Ownership on valuation date governs wealth-tax inclusion; amount retained by executor was excluded from the trust's taxable wealth.

Wealth-tax inclusion depends on the assessee owning the asset on the valuation date. Where an executor still retained the amount and had not paid it over to the trust, and the Revenue failed to show that the trust had acquired ownership on or before that date, the amount could not be treated as part of the trust's taxable wealth. The Rajasthan High Court therefore held that the sum was not includible in the trust's wealth-tax assessment and answered the issue in favour of the assessee.

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Issues: Whether the amount of Rs. 3,50,000 could be included in the assessee-trust's wealth for the relevant assessment years when the amount had not yet been paid over by the executor and the trust had not become the owner of the asset on the valuation date.

Analysis: Inclusion in wealth-tax assessment depends upon the assessee having ownership of the asset on the valuation date. The Tribunal's finding was that the executor still retained the amount, that it had not been parted with to the trust, and that the Revenue had not shown acquisition of the asset by the trust on or before the valuation date. On these facts, the sum could not be treated as part of the trust's taxable wealth.

Conclusion: The amount of Rs. 3,50,000 was not includible in the assessment of the trust, and the answer was in favour of the assessee and against the Revenue.

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