Intangible additions as wealth-tax assets may be presumed available on proximate valuation dates and included in net wealth.

Undisclosed income reflected by intangible additions may be treated as assets for wealth-tax purposes because the statutory definition of assets extends to property of every description, including funds represented by such additions. Where the valuation dates are proximate to the assessment years and the assessee does not show that the secret profits ceased to be available, a presumption of continued availability can operate, especially when the relevant facts lie within the assessee's special knowledge. On that basis, the additions were held includible in net wealth on the relevant valuation dates and the reference was answered against the assessee.

---

---

Issues: Whether intangible additions made in income-tax assessments constituted assets or wealth of the assessee for wealth-tax purposes on the relevant valuation dates.

Analysis: The definition of assets under the Wealth-tax Act is wide enough to include property of every description, including cash or funds represented by undisclosed income. The earlier Supreme Court decision recognised that intangible additions represent real income and can constitute a fund available to the assessee. The later decision relied on by the assessee was confined to its facts and proceeded on the absence of material showing that the secret profits were still available on the valuation date, particularly where a long lapse of time existed. In the present case, the years were consecutive and the gap between the additions and the valuation dates was not sufficiently long to displace the presumption of availability. The facts were specially within the knowledge of the assessee, and the evidentiary principles underlying burden of proof and presumptions supported the Revenue's case.

Conclusion: Intangible additions could be treated as assets and included in the assessee's net wealth on the relevant valuation dates.

Final Conclusion: The reference was answered against the assessee and the intangible additions were held includible in wealth-tax computation.

Ratio Decidendi: Where undisclosed income represented by intangible additions is not shown to have ceased to be available and the valuation dates are proximate to the assessment years, such additions may be presumed to form part of the assessee's net wealth, especially where the facts are within the assessee's special knowledge.

---