| Case ID |
37f25c71-b276-4bba-a430-e7704a278030 |
| Body |
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| Case Number |
CIVIL APPEAL No. 1101 OF 1969 |
| Decision Date |
Apr 08, 1976 |
| Hearing Date |
Apr 08, 1976 |
| Decision |
The Supreme Court held that the liability to wealth-tax arises from ownership of the asset, not mere possession. The property in question was determined to be the individual property of Bireswar Chatterjee, governed by the Dayabhaga school of Hindu law. Upon his death, the property devolved to his heirs as co-owners with defined shares, thus each share constituted 'net wealth' under section 2(m) of the Wealth-tax Act. The Court affirmed the High Court's decision that the wealth-tax should be assessed on the individual shares rather than as a Hindu undivided family, dismissing the revenue's appeal. |
| Summary |
In the landmark case of Commissioner of Wealth Tax v. Bishwanath Chatterjee, the Supreme Court of India addressed critical issues surrounding the applicability of wealth-tax under the Wealth-tax Act, 1957. The case centered on the interpretation of ownership and possession under the Dayabhaga school of Hindu law. Following the intestate death of Bireswar Chatterjee, the Court ruled that his heirs held defined shares in his property, establishing that mere joint possession does not equate to joint ownership. This pivotal ruling clarified that wealth-tax liability is contingent upon ownership of assets, reinforcing the distinction between joint possession and ownership rights. The decision emphasized individual taxation on defined shares, marking a significant precedent in wealth-tax jurisprudence and Hindu succession law. Keywords such as 'wealth-tax', 'Hindu law', 'Dayabhaga', and 'net wealth' are essential for understanding the implications of this case, providing valuable insights for legal practitioners and scholars alike. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
A.N. RAY, C.J.,
M.H. BEG,
R.S. SARKARIA,
P.N. SHINGHAL,
JASWANI SINGH
|
| Lawyers |
S.T. Desai,
B. B. Ahuja,
R.N. Sachthey,
S.P. Nayar,
A.K. Sen,
A.K. Nag,
D.P. Mukherjee
|
| Petitioners |
Commissioner of Wealth Tax
|
| Respondents |
Bishwanath Chatterjee
|
| Citations |
1976 SLD 325,
(1976) 103 ITR 536
|
| Other Citations |
Biswa Ranjan Sarvadhikary v. ITO [1963] 47 ITR 927 (Cal.),
CWT v. Gouri Sankar Bhar [1968] 68 ITR 345 (Cal.),
Sreemurthy Soorjeemoney Dossee v. Denobundoo Mullick [1857] 6 MIA 526 (PC)
|
| Laws Involved |
Wealth-tax Act, 1957
|
| Sections |
3,
2(m)
|