Thereby the respective amounts of Rs.
25,101/ and Rs.
In determining the wealth tax payable by the assessee the Wealth Tax Officer took the view that it was the market value of the shares on the valuation date that was to be included in the wealth of the assessee.
The assessee, an individual, created two trusts, on 18th February, 1957 and 11th November, 1957, for the benefit of his two minor daughters.
46,3027 which was settled by the assessee upon trusts was to be taken into account in companyputing his wealth.
75,610/ .
The decision of the Wealth Tax Officer was companyfirmed in appeal.
In a further appeal before the Income Tax Appellate Tribunal the assessees companytention was upheld and, arising out of its judgment, the question quoted above was referred to the High Court.
On the valuation date the trust funds were held in shares, the valuation of which was Rs.
After the trusts had been created the trustees purchased shares out of the trust funds.
21,201/ were settled upon trust and transferred to the trustees.
He rejected the companytention that only the sum of Rs.
The question arose in respect of the Assessment Year 1962 63, for which the relevant valuation date was 31st March, 1962, and it read thus Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that under Section 4 1 a iii of the Wealth Tax Act, 1957 it is the value of the assets which have been actually transferred by the assessee that should be included in the net wealth of the assessee, the transferor, although the form of assets transferred has undergone a change since the date of the transfer and the value thereof, on the valuation date, is different?
P. Bharucha, J. This is an appeal by special leave against the judgment of the High Court at Bombay on a reference under the provisions of Section 27 1 of the Wealth Tax Act, 1957.
