JAGAT NARAYAN, C.J— The Income-Tax Appellate Tribunal (Delhi Bench A) has referred the following question of law under sec. 27(1) of the Wealth Tax Act to this Court —

"Whether on the facts and in the circumstances of the case, the Wealth-tax Officer was competent to complete assessments against the three Kartas in their individual status in the absence of any wealth-tax returns filed by them and without serving them with notice under sec. 14(2) for filing wealth tax returns ?"

2. This reference arises out of Wealth-tax assessment for the year 1957-58 under sec. 16(3) of the Wealth-tax Act (hereinafter referred to as the Act). Wealth-tax Act, 1957 came into force from the first day of April, 1957. The assessment year 1957-58 was thus the first assessment year under the Act. The Wealth-tax Officer issued notices under sec. 14(2) of the Act in the names of Shri Ridh Karan Bengani, Shri Munnalal Bengani and Shri Prithviraj Bengani of Bidasar for filing their wealth-tax returns. The notices did not specify whether they were to submit wealth-tax returns in respect of the properties belonging to them individually or whether they were to submit wealth-tax returns in respect of the property owned by their Hindu Undivided families However, in response to the notices, the returns were submitted by them as Kartas of their Hindu undivided families, The Wealth-tax Officer held the status of the assessees as that of "individual" and completed the assessment against the Kartas under sec. 16 3) of the Act. All the three of them appealed and the Appellate Assistant Commissioner upheld the assessments against the Kartas in the status of "individual". The assessees went in appeal before the Appellate Tribunal and it was contended on their behalf that as the notice under sec. 14 2) of the Act did not specify the status and the returns were filed by the Hindu Undivided Family through their Kartas, it was not open to the Assessment Officer to assess them as individuals unless a fresh notice under sec. 14(2) of the Act in their individual status was issued by the Wealth-tax Officer. By a common order in all the three appeals, the Tribunal accepted the contention and held that the Wealth-tax Officer exceeded his jurisdiction to complete the assessment of the Kartas in their individual status under sec. 16(3) of the Act. Accordingly, the assessments were set aside.

3. The Commissioner of Wealth-tax Delhi (Central) and Rajasthan, New Delhi moved the Tribunal under sec, 27(1) of the Act to make a reference. As there was common question of law, the Tribunal made the reference and submitted a consolidated statement of the case.

4. After having heard learned counsel for the parties, we are of the opinion that the question must be answered in the negative. Sec. 3 of the Act provides that subject to the other provision contained in this Act, there shall be charged for every assessment year commencing on and from the first day of April, 1957, wealth tax in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company at the rate or rates specified in the Schedule. According to this section, individual, Hindu undivided family and Company were treated as separate units for purposes of assessing wealth-tax. It may be noticed here that from 1-4-1960, Company is not a unit for assessing wealth-tax. Chapter IV of the Act deals with assessment. Under sec. 14 (l), every person, if his net wealth or the net wealth of any other person in respect of which he is assessable under this Act on the valuation date is of such an amount as to render him liable to wealth-tax under this Act, shall, before the 30th day of June of the corresponding assessment year, furnish to the Wealth-tax Officer a return in the prescribed form and verified in the prescribed manner setting forth the net wealth as on that valuation date. This sub-section provides for a voluntary filing of the return. Sub sec. (2) of sec. 14 further provides that

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