COMMISSIONER OF WEALTH TAX vs. LT COL ASHOK RAJE GAEKWAD

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WTR/131/1995HC GujaratGJHC24022813199518 July 2006Author: HONOURABLE MR. JUSTICE M.R. SHAH,HONOURABLE MR. JUSTICE R.S.GARG3 pages

AI SummaryDismissed

What did the High Court hold?

The High Court decided the referred question against the Revenue. The Court noted that identical questions between the same parties had already been answered against the interest of the Revenue in WTR No. 93 of 1995, decided on July 17, 2006, and WTR No. 116 of 1995, decided on the same day as the present judgment. Therefore, following its own previous pronouncements, the High Court answered the question referred in the present case against the Revenue. The specific reasoning for the Tribunal's original decision that the HUF was entitled to the benefit of Section 7(4) is not detailed in this judgment, as the High Court's decision is based on precedent. No issue was left undecided.

What were the facts?

This case involves a Wealth Tax Reference (WTR) No. 131 of 1995 before the High Court of Gujarat at Ahmedabad. The applicant is the Commissioner of Wealth Tax, and the respondent is Lt Col Ashok Raje Gaekwad. The Income Tax Appellate Tribunal (ITAT) has referred a specific question of law to the High Court at the instance of the Revenue. The procedural history indicates that identical questions between the same parties have already been decided by the High Court in WTR No. 93 of 1995 on July 17, 2006, and WTR No. 116 of 1995 decided on the same day as the present judgment. The present judgment refers to those prior decisions for its conclusion.

What were the issues?

1. Whether, on the facts and in the circumstances of the case and in law, the Tribunal is right in holding that the assessee (HUF) despite its being HUF is entitled to the benefit of section 7(4) of the Wealth Tax Act in respect of property known as 'Dhairya Prasad'? The Revenue's contention, as indicated by the reference of the question, is that the assessee, being a Hindu Undivided Family (HUF), should not be entitled to the benefit of Section 7(4) of the Wealth Tax Act for the property 'Dhairya Prasad'. The judgment does not explicitly record the assessee's arguments. However, the Tribunal's decision, which is under challenge, held that the HUF was entitled to the benefit of Section 7(4). The Revenue is seeking a reversal of this finding.

Which sections of the Income-tax Act were involved?

Section 7(4)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

WTR/131/1995 1/3 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD WEALTH TAX REFERENCE No. 131 of 1995 For Approval and Signature: HONOURABLE MR.JUSTICE R.S.GARG HONOURABLE MR.JUSTICE M.R. SHAH ========================================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ========================================================= COMMISSIONER OF WEALTH TAX - Applicant(s) Versus LT COL ASHOK RAJE GAEKWAD - Respondent(s) ========================================================= Appearance : MR MANISH R BHATT for Applicant(s) : 1, NOTICE SERVED for Respondent(s) : 1, ========================================================= CORAM : HONOURABLE MR.JUSTICE R.S.GARG and HONOURABLE MR.JUSTICE M.R. SHAH Date : 18/07/2006

ORAL JUDGMENT (Per : HONOURABLE MR.JUSTICE R.S.GARG)

WTR/131/1995 2/3 JUDGMENT Mrs. Bhatt, learned counsel for the Revenue.

At the instance of the Revenue, the Income Tax Appellate Tribunal has referred the following question to this Court for our answer; “Whether, on the facts and in the circumstances of the case and in law, the Tribunal is right in holding that the assessee (HUF) despite its being HUF is entitled to the benefit of section 7(4) of the Wealth Tax Act in respect of property

known

as 'Dhairya Prasad'?” Identical question, between the same parties, is answered by us against the interest of the Revenue in W.T.R. No. 93 of 1995 decided on 17.7.2006 and W.T.R. No. 116 of 1995 decided today itself. In view of the said Judgment, the question, referred for our answer, is decided

WTR/131/1995 3/3 JUDGMENT against the Revenue. [ R.S. Garg, J. ] [ M.R. Shah, J. ] RMR.

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