COMMISSIONER OF WEALTH-TAX vs SMT. HASHMATUNNISA BEGUM

The Supreme Court interpreted Section 4(1)(a) of the Wealth Tax Act, 1957, holding that assets transferred by way of gift and chargeable to gift-tax are exempt from inclusion in the net wealth of the deceased for assessment years commencing after March 31, 1964. The Court affirmed the Appellate Tribunal's decision that the proviso to Section 4(1)(a) applies to gifts made before the specified date, thus excluding them from wealth tax assessments. The High Court's reversal of the Tribunal's view was set aside, allowing the assessee's appeal.