TMI Blog1980 (3) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Later, on April 6, 1959, 100 shares of Photophone Equipment Ltd. were gifted by the assessee's brother's son to the assessee's three minor children, viz., two sons and one daughter. Now, the question which arose before the WTO for the purpose of assessment of the net wealth of the assessee in respect of the above assessment years was whether the shares received by the three minor children of the assessee were includible in the net wealth of the assessee having regard to the provisions of s. 4(1)(a)(ii) of the W.T. Act, as it stood at the relevant time. The WTO included the value of the shares transferred by the assessee to his brother's grand-daughter and to his brother's wife (sic) in assessing the net wealth for all the four years i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the shares standing in the names of the minor children could not be treated as having been transferred by the assessee in favour of his minor children having regard to the provisions of s. 4(1)(a)(ii) of the W.T. Act, as they then stood. The WTO had also filed an appeal in respect of the assessment year 1963-64, and the Tribunal, following its view taken in respect of the assessment years 1960-61 to 1962-63, rejected the appeal filed by the department. The correctness of the view taken by the Tribunal is now sought to be subjected to the scrutiny of this court in the from of the following question which has been referred to this court by the Tribunal at the instance of the revenue: "Whether, on the facts and in the circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lining ours) Now, Mr. Joshi's contention is that the amendment which has been made by interposing the words "directly or indirectly" in sub-cl. (ii) of sub-s. (1)(a) of s. 4 must be treated as a clarificatory or declaratory amendment and, therefore, even in the original form in which the provision was worded prior to the amendment, should be so construed as to take within its sweep an indirect transfer. It is, therefore, contended that wherever it is found that ultimately the object of the cross-transfers, as in the instant case, was to benefit the minor and at the same time see that there is reduction in the total net wealth in so far as the computation of the net wealth of the assessee is concerned, such transfers will have to be ignor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame of the wife, Parliament has clearly provided that the assets which are directly or indirectly transferred by an individual otherwise than for adequate consideration or in connection with an agreement to live separately will be treated as a part of the net wealth of the individual. The absence of the words " directly or indirectly " in cl. (ii) has to be viewed in the context of their specific use in the first clause. If the intention of the Legislature has to be gathered from the words used by the Legislature and the words used by the Legislature have to be given their natural grammatical meaning, then it is obvious that while using those words in the provisions of cl. (i) of sub-s. (1), the Legislature clearly wanted to include any ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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