TMI Blog1965 (11) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment year 1959-60 ? " The assessee is a Hindu undivided family and the question is of its assessment to wealth-tax for the assessment year 1959-60. The previous year selected by it is the Diwali year, for the assessment year 1959-60 which ended November 8, 1958. The assessee had invested 3 lakhs of rupees in a certain firm. On November 8, 1958, the last day of the previous year, the investment of rupees 3 lakhs was distributed among the various coparceners by necessary entries being made in the accounts. The result was that the assessee I could not be said to possess the amount of rupees 3 lakhs on November 8, 1958. In assessing the wealth-tax, the Wealth-tax Officer, the Appellate Assistant Commissioner of Wealth-tax and the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtitioned among the members of the Hindu undivided family. The question before us is whether the net wealth at the first moment is to be taken into account or at the last moment. There is no provision in the Wealth-tax Act which directly supplies an answer to this question. " Net wealth " means the excess of the valuation of the assets over the value of the debts on the last valuation date but the valuation date is a continuous period beginning at the first moment, and ending at the last moment, of a certain day, and there may be change of the assets or of the debts between the two moments. As the net wealth on the last date of the previous year is to be assessed to tax, it is more reasonable to hold that the net wealth at the last moment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee remains a Hindu undivided family and that only its property is reduced by 3 lakhs of rupees which sum has been divided among its members. As we pointed out recently (see Commissioner of Income-tax v. Purushottam Dass Rais (I.T.R. No. 232 of 1960 decided on 11-8-1965), a partial partition is recognized by the Hindu Law and it does not affect the status of jointness. Therefore, even though the assessee divided the amount of rupees 3 lakhs among its members, it remains a Hindu undivided family. Section 20 applies when a partition takes place in a Hindu undivided family; there is a further condition that the joint family property has been partitioned as a whole, but the first condition that there is a severance of the status of jointness is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpretation of taxing statutes that any ambiguity in it must be resolved in favour of the taxpayer and that no tax liability should be attached unless the law is clear. There is no clear law that the net wealth at the first moment of the valuation date is to be assessed. An assessee can be assessed on only one net wealth ; it is impossible to assess any one on two net wealths, If there are two net wealths on a valuation date, only one of them can be assessed, and neither the other nor both. In the absence of any law clearly laying down either that the higher of the amounts should be assessed or that the net wealth at a particular moment of the valuation date should be assessed, the lower amount should be assessed. The lower net wealth in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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