The expression "individuals" in Entry 86 of List I to the Seventh Schedule of the Constitution includes a Hindu undivided family, and therefore, the Wealth Tax Act, 1957, is not ultra vires the legislative competence of the Union Parliament.

M. SESHACHALAPATI, J.

( 1 ) THIS is a petition under Article 226 of the Constitution of India praying for the issue of a Writ of Certiorari or any other appropriate writ or direction to call for the records from the Additional Wealth Tax Officer, Eluru, and quash the assessment order dated 20-3-1958, made against the petitioner for the year 1957-58.

( 2 ) THE petitioner and his three sons constituted a Hindu undivided family till 16-9-1957, when a partition between them is stated to have taken place. A notice under Section 14 (2) of the Wealth Tax Act (Act XXVII of 1957) was issued to the petitioner and in response thereto the petitioner submitted a return declaring his total wealth at Rs. 11,06,458. 00 comprising of business assets of the value of Rs. 5,71,399. 00 and non-business assets of Rs. 5,35,079. 00. A notice under Section 16 (2) was served upon the petitioner to produce the evidence necessary in support of his return. The petitioner appeared through his representative, a chartered accountant, and produced the evidence and made representations. After scrutinising the evidence and considering the representations, the Additional Wealth Tax Officer passed the assessment order dated 20-3-1958 fixing the total wealth of the petitioner at Rs. 12. 25. 614. 00 and the tax due thereon at Rs. 4,128. 07np. The tax was directed to be paid on or before the 30/03/1958. In the counter affidavit filed by the respondent, it is stated that the tax was paid by the petitioner by 1-4-1958. In this petition, the petitioner contends that the respondent car/not take action under the provisions of the Wealth Tax Act 1957 with respect to Hindu undivided family on the ground that the Wealth Tax Act 1957 in so far as it enables the levy and collection of wealth tax on the capital value of the assets of a Hindu undivided family it is beyond the legislative competence of the Union Parliament and consequently any action taken Or purported to be taken under the provisions of that Act in so far as they relate to Hindu undivided family is lacking in legal sanction and authority.

( 3 ) THE Wealth Tax Act of 1957 (Act XXVII of 1957) was passed by the Union Parliament and has come into force on the 1st day of April 1957. It is an Act to provide for the levy of wealth tax. Section 2 (c) defines an "assessee" to be a person by whom wealth tax or any other sum of money is payable under the Act, and includes every person in respect of whom any proceedings under the Act has been taken for the assessment of the value of his assets. "net wealth" is defined in Clause (m) of Section 2 and the date of valuation in Clause (q ). Chapter it provides for the charge of wealth tax and deals with the assets which are subject to such a charge. Chapter III deals with the authorities created under the Act. Chapter IV deals with the assessment. Section 14 in Chanter IV casts an obligation on the part of every person whose net wealth on the valuation date was of such amount as to render him liable to wealth tax to submit a return. Sub-section (2) authorises the Wealth Tax Officer, if he is of opinion that the net wealth of any person is of such an amount as to render him liable to wealth tax under the Act, to serve a notice upon such, person requiring him to furnish within a period not less than 30 days the particulars of net wealth of such person on the valuation date in the form prescribed. Section 16 (1) provides that if the Wealth Tax Officer is satisfied that the return made under Section 14 is complete, he may assess the net wealth of the assessee and determine the amount of tax. Under Section 16 (2) it is provided that if the Wealth Tax Officer is not satisfied with the return, he may call upon the assessee to produce evidence in support of his return and after hearing the objections assess the net wealth of the assessee and determine the amount payable. Where a person fails to make a return in response to notice under Section 14 (2) or fails to comply with the notice u

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