WEALTH TAX OFFICER Vs. NAWAB NASIRUDDIN KHAN
LAWS(IT)-1989-12-18
INCOME TAX APPELLATE TRIBUNAL
Decided on December 01,1989

Appellant
VERSUS
Respondents

JUDGEMENT

G.K. Israni, Judicial Member - (1.)THESE two appeals by the revenue are directed against separate orders of the learned Deputy Commissioner of Wealth-tax (Appeals), dated 22-9-1988 and 15-11-1988 for the assessment years 1981-82 and 1982-83 respectively. Since the two appeals raise identical grounds and involve common questions of law and facts, it is proposed to dispose of both the appeals by this common single order.
(2.)These appeals raise the following common ground, namely:-
On the facts and in the circumstances of the case, the learned Dy. CIT (Appeals) has erred in directing the W.T.O. to take half of the value of Amravati Road property which has been worked at

JUDGEMENT_13127_TLIT0_19890.htm

and allow exemption Under Section 5(1)(iv) of the Wealth-tax Act.

The assessee was the owner of a house situated at Amravati Road, Nagpur. In the assessment proceedings under the Income-tax Act for the assessment year 1970-71 the question of capital gains came up for consideration before the Income-tax Officer. In connection therewith, the assessee claimed that he had transferred 50% share of the aforesaid property to his wife Smt. Amrunnisa in lieu of the Mehar debt under the Agreement dated 1-7-1969. The I.T.O., however, declined to accept this claim of the assessee mainly on the ground that since the document purporting to transfer half share of the house to the assessee's wife was compulsorily registrable under Section 17 of the Registration Act, 1908, and had not been duly registered under the provisions of that Act, it failed to transfer any right or title in the property to the wife. The document thus neither divested the assessee of his right in the property nor conferred any right on the assessee's wife in the said property. This part of the I.T.O's order was challenged in the first appeal. It so transpired that before the first appeal for the assessment year 1970-71 on the income-tax side could be decided by the learned A.A.C., the assessee's appeals on the wealth-tax side (bearing Nos. 259 to 262 (Nag.)/81) for the assessment years 1970-71 to 1973-74 were decided in the assessee's favour on 14-9-1982. The learned A.A.C. (Income-tax), therefore, following the Tribunal's order dated 14-9-1982 held that the transfer of a property by husband to his wife in lieu of dower debt need not be supported by a registered document. The A.A.C's order passed on the income-tax side was taken by the department in appeal to the Tribunal, but challenge on this point was unsuccessful, vide the Tribunal's order dated 24-1-1985 passed in I.T.A.No. 861(Nag)/83 for the assessment year 1970-71.

(3.)ON the wealth-tax side we find that the matter had been agitated at various levels in relation to the assessment years 1969-70 onwards. Before us certain orders of the Tribunal have been produced. ONe such order is dated 17-2-1982 which has been passed in W.T.A. No. 178(Nag)/1981 for the assessment year 1975-76. ONe more order, although of a latter date, that is 14-2-1982 relates to the earlier years, that is the assessment years 1970-71 to 1973-74. The order dated 17-2-1982 passed in W.T.A. No. 178 (Nag)/1981 for the assessment year 1975-76 has been followed in the subsequent order dated 14-9-1982 for the four assessment years 1970-71 to 1973-74. Also filed before us is the order dated 16-6-1981 passed by the Commissioner of Wealth-tax (Appeals), Nagpur, in the first appeal for the assessment years 1969-70 to 1974:75. In that order the CWT(Appeals) has reproduced verbatim the agreement dated 1-7-1969 which reads as under:-
I hereby agree as under :-

That I am legally bound to pay to you the amount of Power (Mehar) i.e. Rs. 1,40,000 which I have not been able to pay to you so far.

2. That since you have been demanding payment of the said dower amount for some time past and as I am unable to pay the same to you for the present, I hereby agree that in consideration of the said dower amount, I will transfer to you by way of absolute transfer my half share in the entire property of Bhandra House Bungalow in Plot No. 4-D of Tilak Nagar, on Amravati Road, Nagpur. I further agree that I will not mortgage, encumber or transfer in any other manner my right in the said property to any other person till I transfer my half share therein in your favour in lieu of your dower claim against me.

Yours faithfully,

I, the undersigned, agree to above arrangement in full satisfaction of my claim of dower against you.



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