| Case ID |
2e52cb0c-8745-4212-bab0-6e34e3861617 |
| Body |
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| Case Number |
Civil Appeal No. 1101 of 1969 |
| Decision Date |
Apr 08, 1976 |
| Hearing Date |
|
| Decision |
The Supreme Court of India dismissed the appeal, holding that the assets in question belonged individually to the heirs of Bireswar Chatterjee, and each was liable to wealth tax under the Wealth Tax Act, 1957. The court concluded that under the Dayabhaga school of Hindu law, the property devolves in defined shares upon partition, and as such, each co-heir's share constitutes their net wealth, making them individually assessable for wealth tax purposes. |
| Summary |
In Civil Appeal No. 1101 of 1969, decided on April 8, 1976, the Supreme Court of India addressed a significant issue under the Wealth Tax Act, 1957 concerning the taxation of property inherited by a Hindu undivided family governed by the Dayabhaga school. The appellant, represented by senior advocate S.T. Desai and his team, contested the assessment of wealth tax levied on the estate of the deceased, Bireswar Chatterjee, following his death intestate. The respondents, including Bishwanath Chatterjee and others, were argued to be liable individually for wealth tax based on their defined shares in the inherited property. The court, presided over by Chief Justice A.N. Roy and other esteemed judges, analyzed the definitions within the Wealth Tax Act, particularly focusing on Sections 2(m) and 3, to determine the concept of 'net wealth' and 'belonging to the assessee.' The judgment delved into the implications of the Dayabhaga school, highlighting the distinction between unity of possession and unity of ownership. It was determined that each co-heir held a distinct and defined share in the property, thereby constituting individual ownership suiting individual wealth tax assessments. The court referred to prior cases, including Commissioner of Wealth-tax v. Gouri Shankar Bhar, reinforcing that properties under Dayabhaga do not form a joint wealth unit but are instead partitioned into specific portions subject to separate taxation. Consequently, the appeal was dismissed, affirming that each heir's share is their net wealth liable for wealth tax, thereby setting a precedent for clarity in taxation of inherited properties under different schools of Hindu law. This landmark decision underscores the importance of understanding the nuances of Hindu succession laws, particularly the Dayabhaga school, in the context of wealth taxation, ensuring fair and accurate tax assessments based on individual ownership and defined property shares. |
| Court |
Supreme Court of India
|
| Entities Involved |
Income-tax Officer,
Commissioner of Wealth Tax, West Bengal,
Bireswar Chatterjee
|
| Judges |
A.N. Roy, C.J.,
M. H. Beg,
R.S. Sarkaria,
PN. Shinghai,
Jaswant Singh
|
| Lawyers |
S.T. Desai,
B.B. Ahuja,
R.N. Sachthey,
S.P. Nayar,
A.K. Sen,
A.K. Nag
|
| Petitioners |
Commissioner of Wealth Tax, West Bengal
|
| Respondents |
Bishwanath Chatterjee and Others
|
| Citations |
1976 SLD 48 = (1977) 35 TAX 231
|
| Other Citations |
Biswa Ranjan Sarvadhikary v. Income-tax Officer (1963) 47 ITR 927 (Cal),
Commissioner of Wealth-tax v. Gouri Shankar Bhar (1961) 68 ITR 345 (Cal),
Commissioner of Wealth-tax v. Gouri Shankar Bhar (1972) 84 ITR 699 (SC), (PC),
Sremutty Soorieemoney Dosswa v. Denobundoo Mulliok (1857) 6 MIA 526 (PC)
|
| Laws Involved |
Wealth Tax Act, 1957
|
| Sections |
2,
2(m),
3
|