Higher wealth-tax rate applies to HUF once a member has assessable wealth above the threshold, despite separate residence.

The higher wealth-tax rate under Schedule I of the Wealth-tax Act applied to a Hindu undivided family where one member had assessable wealth above the prescribed threshold; the member's separate residence, lack of claim to family property, or prior partition-related contention did not affect the statutory condition. The tribunal treated the existence of qualifying assessable wealth in the member as sufficient, and rejected the contention that an adopted mother living apart had ceased to be a family member for this purpose. The higher rate was therefore upheld and the assessee's challenge failed.

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Issues: Whether the higher rate of wealth-tax under Schedule I of the Wealth-tax Act, 1957 could be applied to a Hindu undivided family where one member had assessable wealth exceeding the prescribed limit, despite that member living separately and not asserting any claim to the family property.

Analysis: The condition for levy of the higher rate was that a member of the Hindu undivided family should have assessable wealth above the threshold. The existence of such wealth by the member was sufficient for the statutory condition, and it was irrelevant whether that member was living separately, had parted with family property, or had no subsisting claim over the family assets. The argument that a mother who had been adopted and was living apart ceased to be a member of the family was rejected.

Conclusion: The higher rate of tax was rightly applied, and the assessee's challenge failed.

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