Commissioner of Wealth Tax vs Joginder Singh Lal Singh

Rajesh Balia, J.—The following question of law arising out of the Tribunal''s order in ITA 433/Ahd/78-79, has been referred to this Court for opinion along with the statement of case submitted at the instance of the Revenue pertaining to the assessment of wealth of respondent for asst. yrs. 1972-73 to 1974-75.

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the sums deleted in the Income Tax proceedings were not liable to be included in the wealth of the assessee for the assessment year in question ?"

Heard learned counsel for the Revenue.

No one appears for the assessee.

From the statement of fact it appears that the assessee had borrowed amounts of Rs. 39,200 in the first year and Rs. 43,200 in each of the two subsequent years from his wife and son, which were explained to be prize money received by wife and son respectively. The three amounts were added to the wealth of the assessee in respect of respective assessment years by treating the same as part of assessee''s wealth on the ground that for the asst. yr. 1970-71, the alleged prize money received by wife and son was held to be income of the assessee from undisclosed sources and not of the wife and son.

The additions in wealth of the assessee for the three years aforesaid were deleted on the sole ground that additions made in the income of the assessee for the year 1970-71 had been deleted by the Tribunal vide its order dt. 21st November, 1979 in ITA No. 433/Ahd/1978-79. It is in these circumstances that the aforesaid question has been referred to us. It has been brought to our notice that the deletion of the alleged prize money received by wife and husband in the account year relevant to asst. yr. 1970-71 by the aforesaid order of the Tribunal was made subject-matter of Reference in IT Ref. No. 407/81. The said deletion has since been held to be not sustainable by decision in IT Ref. No. 407/81 - CIT vs. Yoginder Singh Lal Singh on 27th September, 1995, and therefore, foundation for deleting the additions made in the wealth-tax for the assessment years in question by the Tribunal does not survive. This position appears to be correct. In that view of the matter, the question referred to us has to be answered in the negative that is to say, in favour of the Revenue and against the assessee. The Tribunal shall have to decide the question of additions made by the ITO afresh in accordance with law and on merits for each assessment years. No costs.