Wealth-tax asset definition excludes revocable trust interests exposed to revocation within six years on the valuation date.

Beneficiaries' interests under the trust deeds were not includible in net wealth under the Wealth-tax Act because, on the relevant valuation dates, the interests were exposed to revocation within six years and therefore fell outside the statutory concept of "assets". The Gujarat HC relied on the later Supreme Court interpretation that an interest is excluded from the asset definition if it is available to the assessee for a period not exceeding six years on the valuation date. Once that point was accepted, questions about vesting, contingency, and the application of sections 21(2) and 21(4) became unnecessary. The issue was answered against the Revenue and in favour of the assessees.

---

---

Issues: Whether the beneficiaries' interests under the trust deeds were includible in net wealth under the Wealth-tax Act, having regard to the revocation clause and the scope of the expression "assets".

Analysis: The decisive consideration was the later Supreme Court ruling that an interest is outside the asset definition if, on the valuation date, it is available to the assessee for a period not exceeding six years. The trust deeds here were irrevocable only until 15 March 1964, and on the relevant valuation dates in 1958 to 1961 the beneficiaries' interests were exposed to revocation within six years. On that footing, the interests could not be treated as assets for wealth-tax purposes. The earlier discussion on vesting, contingency, and the modes of assessment under sections 21(2) and 21(4) became unnecessary once the asset question was answered against inclusion.

Conclusion: The beneficiaries' interests were not includible in net wealth for the relevant valuation dates, and the questions were answered against the Revenue and in favour of the assessees.

---