COMMISSIONER OF WEALTH-TAX vs. HARIKVALLABHDAS KALIDAS CH. TRUST

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WTR/8/1985HC GujaratGJHC24012544198526 June 2001Author: HONOURABLE MR. JUSTICE ANIL R. DAVE,HONOURABLE MR. JUSTICE D.A.MEHTA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, per Mr. Justice A.R. Dave, referred to its previous decisions in Wealth Tax Reference No. 21 of 1981 (decided on 3/12/1993) and Wealth Tax Reference No. 22 of 1981 (decided on 18/1/1995). Based on the law laid down in those earlier judgments, the Court replied to all three referred questions in the affirmative, meaning in favour of the assessee and against the Revenue. The Court did not provide a fresh reasoning for each issue but relied on its prior pronouncements. The ratio decidendi would be that the principles established in the cited references apply to the present case. The reference was disposed of accordingly, with no order as to costs.

What were the facts?

This case involves a Wealth Tax Reference made by the Revenue at the instance of the Commissioner of Wealth-Tax against the assessee, Harikvallabhdas Kalidas Ch. Trust. The reference was made under Section 27(1) of the Wealth Tax Act, 1957, seeking the opinion of the High Court on three questions of law. The Income Tax Appellate Tribunal, Ahmedabad Bench 'C', had passed the order under challenge. The Revenue appeared through its counsel, while the respondent assessee did not appear despite being served notice. The High Court heard the arguments of the Revenue's counsel.

What were the issues?

The Tribunal had to decide three questions referred by the Revenue: 1. Whether the Tribunal erred in law and fact in holding that Section 21A of the Wealth-tax Act, 1957, was not applicable to the assessee. 2. Whether the Tribunal erred in law and fact in holding that Section 13(1)(c) read with Section 13(2)(h) of the Income-tax Act, 1961, were not attracted in the case of the assessee. 3. Whether the Tribunal was right in law in confirming the order of the Commissioner of Wealth-tax (Appeals) which held that the value of 5552 shares of Ambica Mills Ltd. was exempt in the assessee's hands. The Revenue contended that the Tribunal had erred in its findings on these issues. The assessee's contentions are not recorded as they did not appear. The Tribunal's decision on these points formed the basis of the reference.

Which sections of the Income-tax Act were involved?

Section 27(1),Section 21A,Section 13(1)(c),Section 13(2)(h)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

WEALTH TAX REFERENCE No 8 of 1985

For Approval and Signature:

Hon'ble MR.JUSTICE A.R.DAVE and Hon'ble MR.JUSTICE D.A.MEHTA ============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements?

2.

To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement?

4.

Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder?

5.

Whether it is to be circulated to the Civil Judge? : NO -------------------------------------------------------------- COMMISSIONER OF WEALTH-TAX Versus HARIKVALLABHDAS KALIDAS CH. TRUST -------------------------------------------------------------- Appearance: MR B.B.NAYAK FOR MR MANISH R BHATT for Applicant. MR JP SHAH for Respondent No. 1

--------------------------------------------------------------

CORAM : MR.JUSTICE A.R.DAVE and MR.JUSTICE D.A.MEHTA

Date of decision: 26/06/2001

ORAL JUDGEMENT (Per : MR.JUSTICE A.R.DAVE)

At the instance of the Revenue, the following questions have been referred to this Court for its opinion by the Income Tax Appellate Tribunal, Ahmedabad Bench "C" under the provisions of section 27(1) of the Wealth Tax Act,1957 (hereinafter referred to as 'the Act').

"

1.

Whether, the Appellate Tribunal has not erred in law and on facts of the case in holding that the provisons of section 21A of the Wealth-tax Act,1957 were not applicable to the assessee ?

2.

Whether the Appellate Tribunal has not erred in law and on facts in holding that the provisions of section 13(I) (C) read with section 13(2) (h) of the Income-tax Act,1961 were not attracted in the case of the assessee ?

3.

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal has been right in law in confirming the order of the Commissioner of Wealth-tax (Appeals) holding the value of 5552 shares of Ambica Mills Ltd. to be exempt in the assessee's hands?"

We have heard learned Advocate Shri B.B.Nayak, appearing for the applicant. Though the respondent has been served with notice of this Court, nobody has appeared on behalf of the respondent trust.

Shri Nayak, learned Advocate, appearing for the applicant has submitted that all the three questions which have been referred to in the present Reference have already been replied to by this Court in Wealth Tax Reference No.21 of 1981 decided on 3/12/1993 and Wealth Tax Reference No.22 of 1981 decided on 18/1/1995. In view of the law laid down by this Court, in the Wealth Tax References referred to hereinabove, we reply the questions referred to in the present Reference in the affirmative i.e. in favour of the assessee and against the Revenue.

The Reference thus stands disposed of accordingly with no order as to costs. (A.R.Dave, J) (D.A.Mehta,J)

m.m.bhatt

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