COMMISSIONER OF WEALTH-TAX vs. HAZARAT PIR SHAH-E-ALAM ROZA ESTATE TRUST

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WTR/103/1995HC GujaratGJHC24022785199517 July 2006Author: HONOURABLE MR. JUSTICE M.R. SHAH,HONOURABLE MR. JUSTICE R.S.GARG2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court of Gujarat, in this Wealth Tax Reference, held that the Appellate Tribunal was correct in its decision. The Court referred to its own prior judgment in the case of Commissioner of Income-tax v. Hazarat Pir Shah-e-Alam Roza Estate Trust, reported in 256 ITR 193. In that earlier decision, the High Court had already determined that the assessee trust is not liable to wealth-tax because it is a religious charitable trust and its wealth is exempt under Section 5[1][i] of the Wealth-tax Act. Given this authoritative pronouncement between the same parties, the High Court found no further need for deliberation. The question referred to the Court was answered against the Revenue, and the Reference was disposed of. The ratio decidendi is that a prior High Court judgment on the same issue between the same parties is binding and dispositive of subsequent references on the same subject.

What were the facts?

This case involves a reference made by the Income-tax Appellate Tribunal at the instance of the Revenue (Commissioner of Wealth-Tax) to the High Court of Gujarat. The assessee is Hazrat Pir Shah-e-Alam Roza Estate Trust. The core issue revolves around the assessee's liability to wealth-tax for a particular assessment year, with the Tribunal having held that the trust is not liable. The High Court notes a previous judgment between the same parties, reported in 256 ITR 193, where the High Court itself had ruled on the wealth-tax liability of the assessee trust.

What were the issues?

1. Whether, the Appellate Tribunal is right in law and on facts in holding that the assessee trust is not liable to wealth-tax, it being a religious charitable trust and that its wealth is exempt under section 5[1][i] of the Wealth-tax Act? Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The Revenue, through its reference to the High Court, is challenging the Tribunal's finding that the assessee trust is not liable to wealth-tax and that its wealth is exempt under Section 5[1][i] of the Wealth-tax Act, 1957. The Revenue implicitly argues that the Tribunal erred in its interpretation of the law or facts concerning the trust's charitable/religious nature and its eligibility for exemption.

Which sections of the Income-tax Act were involved?

Section 5[1][i]

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

WTR/103/1995 1/2 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD WEALTH TAX REFERENCE No. 103 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 HAZARAT PIR SHAH-E-ALAM ROZA ESTATE TRUST - Respondent(s) ========================================================= Appearance : MR MANISH R BHATT for Applicant(s) : 1, None for Respondent(s) : 1, ========================================================= CORAM : HONOURABLE MR.JUSTICE R.S.GARG and HONOURABLE MR.JUSTICE M.R. SHAH Date : 17/07/2006

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

WTR/103/1995 2/2 JUDGMENT

At the instance of the Revenue, Income-tax Appellate Tribunal has referred the following question to this Court for its answer. “ Whether, the Appellate Tribunal is right in law and on facts in holding that the assessee trust is not liable to wealth-tax, it beingn a religious charitable trust and that its wealth is exempt under section 5[1][i] of the Wealth- tax Act?” In the matter of the very same assessee, this Court in the case of Commissioner of Income-tax v. Hazarat Pir Shah-e-Alam Roza Estate Trust, reported in 256 ITR 193 has held that the assessee trust is not liable to wealth-tax being a religious charitable trust as its wealth is exempted under Section 5[1][i] of the Wealth-tax Act. In view of the said authoritative pronouncement between the same parties, nothing further is required to be done in the matter and the question referred to this Court is answered against the Revenue. The Reference is disposed of. [R.S. GARG, J.]

[M.R. SHAH, J.] pirzada/-

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