JUDGMENT
1. By this reference under Section 27(1) of the Wealth-tax Act, 1957 (hereinafter referred to as the “Act”), the Income-tax Appellate Tribunal has referred the following question of law to this court for its opinion :
“Whether, on the facts and in the circumstances of the case, the intangible additions made in the income-tax proceedings could be treated as the assets of the assessee for the purpose of wealth-tax assessment in the light, of the provisions of Section 2(e) and (m) of the Wealth-tax Act, 1957 ?”
2. The material facts giving rise to this reference, briefly, are as follows ;
The assessee is an individual. While framing the assessment of the assessee under the Act for the year 1976-77, the Wealth-tax Officer held that intangible additions made in assessments under the Income-tax Act represented assets in the shape of cash and as the assessee had failed to explain that the amount was spent, the intangible additions were includible in the net wealth of the assessee and the assessee was assessed accordingly. The appeal preferred by the assessee in this behalf was dismissed. On further appeal before the Tribunal, the Tribunal deleted that addition.
3.
Aggrieved by the order passed by the Tribunal, the Revenue sought reference and it is at the instance of the Revenue that the aforesaid question of law has been referred to this court for its opinion.
4. None appeared on behalf of the assessee. Learned counsel for the Revenue brought to our notice that the matter arising in this reference is governed by a decision of this court in CWT v. Mishrilal Jain [1986] 161 ITR 583. A Division Bench of this court in that case has held that the intangible additions made in the income-tax assessment of an assessee are part of his real income and are includible in the not wealth of the assessee on the relevant valuation dates in view of the provisions of Section 2(e) and (m) of the Act, unless it was found that the intangible additions were not available with the assessee on the relevant, valuation dates. Following that decision, with which we respectfully agree, our answer to the question referred to this court is that, on the facts and in the circumstances of the case, the intangible additions made in the income-tax proceedings could be treated as the assets of the assessee for the wealth-tax assessments in the light of the provisions of Section 2(e) and (m) of the Wealth-tax Act, 1957. The reference is answered accordingly. In the circumstances of the case, parties shall bear their own costs.
5. Let a copy of this judgment be forwarded by the office of this court to the Assistant Registrar, Income-tax Appellate Tribunal, Patna.