1995 (2) TMI 36

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....e instance of the assessee, the following question is referred to us for our opinion under section 27(1) of the Wealth-tax Act, 1957 : " Whether, on the facts and circumstances of the case, and on a correct interpretation of section 20 of the Wealth-tax Act, 1957, the assessment for the assessment year 1979-80 has been validly made on the bigger Hindu undivided family of Vulli Kamaraju ? " For t....

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....tax Officer on the ground that there was full partition on the valuation date. However, on further appeal to the Income-tax Appellate Tribunal by the Revenue, the order of the Assistant Commissioner was set aside and the order of the Wealth-tax Officer was restored by order dated February 22, 1984. It is this order that gave raise to the question referred to above. It is too far to maintain a cha....

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....ay wealth-tax under section 3 of the Wealth-tax Act could arise. This contention ignores the provision of section 20 of the Wealth-tax Act which reads thus : " 20. (1) Where, at the time of making an assessment, it is brought to the notice of the Assessing Officer that a partition has taken place among the members of a Hindu undivided family, and the Assessing Officer, after inquiry, is satisfied....

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...." A perusal of sub-section (1) of section 20 makes it clear that for purposes of the Wealth-tax Act, if it is noticed by the assessing authority that the partition had taken place on the last day of the previous year and even when the partition is made by the members of the Hindu undivided family during the previous year relevant to the assessment year, wealth-tax has to be assessed on the net we....