TaxTMI 
TaxTMI 
1994 (12) TMI 51
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....lly valuation dates such as March 31, 1970, 1971, 1972, 1973, 1974, 1975 and 1976. The assessee, Smt. Sarala Devi of Quilon, is one amongst three, that is, herself, her sister, Smt. Kamala Bai, and her brother, K. Rajan, who all three inherited the property in question from their father, Sri M. P. Kesavan. Therefore, the question that is involved in these references relates to the one-third share of the present assessee, Smt. Sarala Devi. The property consists of a cashew factory and some shops along with the appurtenant land. It was vacant. In 1976, the factory was let out to the Kerala State Warehousing Corporation for a rent of Rs. 2,500 per month. Thereafter, it was sold in March, 1977, to the Warehousing Corporation. The total conside....
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....iew which took up the proceedings before the Tribunal. The Tribunal initially considered in paragraph 8 of its order, placing reliance on section 2(m) of the Wealth-tax Act, 1957, which defines and enacts the meaning of the term "net wealth" to mean the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee on the valuation date. In other words, the main definition of the term "net wealth" is more than clear and it would mean as provided in the said definiti....
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....net wealth of the present assessee who is to be taxed and not as reflecting the dues of the deceased father towards the income-tax. The submission of learned counsel has its force in his favour and which becomes more clear and apparent when we proceed to the real aspect of the reasoning of the Tribunal in paragraph 10 of the order. The Tribunal refers to the provisions of section 159(6) of the Income-tax Act, 1961, with reference to the provisions of sub-sections (4) and (5) together therewith. The proposition that emerges rightly and justifiably from the above provisions would show that a personal liability is laid up on the doors of the legal representatives, in a situation in the event of the liability remaining undischarged and thereun....
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....logical and legitimate explanation of the commonsense situation. Ultimately, what acquires the character of valuation is what remains ultimately at the hands of the seller which could be legitimately regarded as the price which would alone be termed as net wealth in accordance with the provisions of section 2(m) of the Act. The learned Tribunal also relied on the decision of the Supreme Court in CWT v. P. N. Sikand [1977] 107 ITR 922, where the authority was required to consider the leasehold interest, laying down the same proposition that in the process of valuation the burden of various disadvantages, minimising the ultimate price, having the effect of depreciation or other similar disadvantages would have to be duly discounted in estima....