Temporal scope of net wealth exclusion for spouse gifts confined to the statutory period; punctuation cannot alter plain meaning.

The proviso to section 4(1) of the Wealth-tax Act was construed according to its plain wording and temporal limit. Assets transferred to a spouse were excluded from net wealth only for gifts made within the specified period after 31 March 1964 and up to 1 April 1972, whether chargeable to gift-tax or otherwise not chargeable under section 5 of the Gift-tax Act. A comma in the proviso was held not to control interpretation because punctuation cannot override clear statutory meaning. A gift made in 1958 therefore fell outside the exclusion and was includible in net wealth.

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Issues: Whether the proviso to section 4(1) of the Wealth-tax Act excluded from net wealth assets transferred to the spouse when the gift was made in 1958.

Analysis: The proviso was read according to its plain language. The Court held that assets transferred after 31 March 1964 and up to 1 April 1972, being either chargeable to gift-tax or not chargeable under section 5 of the Gift-tax Act, were outside the donor's net wealth. The presence of a comma after the reference to section 5 of the Gift-tax Act was held not to control the meaning of the provision, since punctuation is not a safe guide to construction. The Court accepted the interpretation that the proviso applied only to gifts within the specified period, and not to a gift made in 1958.

Conclusion: The 1958 gift was includible in the assessee's net wealth, and the exclusion claimed was not available.

Final Conclusion: The reference was answered against the assessee and in favour of the revenue on the temporal scope of the proviso excluding spouse-transferred assets from net wealth.

Ratio Decidendi: A proviso excluding gifted assets from net wealth applies only within its stated period, and punctuation cannot override the plain statutory meaning.

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