1992 (3) TMI 5

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....4, the Wealth-tax Officer calculated the value of the movable properties consisting mostly of shares in limited companies, deposits in bank and loan to company of the husband as belonging to the body of individuals comprising the husband and wife. He then worked out the net wealth of the communion by deducting from it Rs. 1,50,000 under section 5(1)(xxxii) read with section 5(1A) of the Wealth-tax Act. After allowing the exemption and deducting the liabilities of the communion, the net wealth of the communion was arrived at and fifty per cent. of it was determined as the net wealth of the husband. The order was maintained in appeal. The Tribunal allowed the appeals of the assessee against which the Department moved an application under sect....

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....a V. Dempo [1981] 131 ITR 291 (Bom)), out of which the appeals of 1980 were filed was as under (at page 292) : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that each of the spouses married under the Portuguese Civil Code is entitled to deduction under section 5 of the Wealth-tax Act, 1957, separately ?" The High Court, after elaborate discussion of the provisions of law and various decisions under the Income-tax Act on the construction of the expression "association of persons", held that even though joint rights in the properties of the spouse came into being as a result of marriage under the provisions of the Portuguese Civil Code, in the absence of any ante-nuptial agreement prov....