AIR 1991 SUPREME COURT 1866 ::1991 AIR SCW 2055 ::1991 TAX. L. R. 688 ::1990 SCC(Tax) 364 ::(1990) 84 CurTaxRep 35 ::1990 (3) SCC 624 ::1990 (184) ITR 34 ::(1990) 51 Taxman 15 ::(1990) 3 JT 476 (SC) ::1990 (3) JT 476

Supreme Court Of India

(From: 1982 Tax LR 809 (All))

Hon'ble Judge(s): Kuldip Singh, S. C. Agrawal , JJ

Asset - Definition of - Exclusion of interest in property under S.2(e)(2) (iii) of Wealth-tax Act - Scope - Word "is" occurring in that provision - Refers to present and future - Does not mean "has been" - Tenant holding over - New tenancy from month to month for unstated period - Tenancy precarious as could be terminated - Interest created by such tenancy Court not be treated as asset.1982 Tax LR 809 (All), Reversed. Wealth-Tax Act (27 of 1957) , S.2(e)(2)(iii)— Words and Phrases - Word "is". The word 'is', although normally referring to the present often has a future meaning. It may also have a post signification as in the sense of 'has been'. In view of the words "for a period not exceeding six years" which follow the word "available" the word 'is' occurring in S.2(e)(2)(iii) of the Wealth-tax Act must be construed as referring to the present and the future. In that sense it would mean that the interest is presently available and is to be available in future for a period not exceeding six years.(Para 12) The question as to whether the interest in property should be included or excluded from the assets of the assessee under S.2(e)(2)(iii) of the Act has to be considered in the light of the nature of interest on the relevant date. Under the said provision the relevant date is the date on which the interest vests in the assesse....