Commissioner of Wealth Tax vs Late Shri N.D. Bhargava

R.K. Gulati, J.—These connected applications u/s 27(3) of the Wealth-tax Act, 1957 (''the Act'') for the assessment years 1957-58 to 1961-62 have been filed at the instance of the Commissioner. A common question has been proposed in these applications. It appears that Shri N.L. Bhargava (since deceased) filed wealth-tax returns for the aforesaid years in the status of an individual. After his death one of his legal heirs, revised the returns filed by the deceased and put forward a plea that certain assets and properties which have been returned in the return filed in status of an individual by the deceased belonged to the HUP of which the deceased was only one of the members and as such those assets and properties were not liable to be assessed in his hand as an individual. Pending wealth-tax assessments for the years in dispute, the estate left by the deceased was subjected to estate duty under the Estate Duty Act, 1953. The question raised in these applications was also raised in the estate duty matter and ultimately the Tribunal upheld the plea in respect of the properties alleged as belonging to the HUP. Against the order passed by the Tribunal, the revenue came to this Court u/s 64 of the Estate Duty Act, 1953 with a prayer that the Tribunal be directed to state the case to this Court, inasmuch as the question whether the property belonged to the family or to the individual, was a question of law fit for reference. That application was accepted by this Court and the Tribunal was directed to state the case for the opinion of this Court. The said reference is pending final adjudication before this Court.

In deciding the appeals for the years in dispute the Tribunal has relied on its earlier'' decision which was given in the estate duty matter.

We have heard the learned counsel for the parties and are of the view that the common question raised in these applications does arise out of the order passed by the Tribunal and is a question of law. We, accordingly, direct the Tribunal to draw up a statement of the case and to refer the following question of law for the opinion of this Court:

Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that one-fourth of the entire assets left by Shri Niranjan Lal Bhargava at the time of his death was his separate property representing the property inherited by him from mother?

The applications are accordingly allowed. Parties shall bear their own costs.