COMMISSIONER OF WEALTH TAX vs. BHARTI SHALINI NAP TRUST

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WTR/213/1996HC GujaratGJHC24022143199629 January 1998Author: HONOURABLE MR. JUSTICE R.K.ABICHANDANI,HONOURABLE MR. JUSTICE ANIL R. DAVE2 pages
AI SummaryAllowed

What did the High Court hold?

The High Court answered the referred question in the affirmative, in favour of the assessee and against the Revenue. The reasoning is based on the judgment and order delivered in a similar case, Wealth Tax Reference No. 43/93, decided on the same day. The High Court found the facts and the question involved to be almost identical to that prior case. Therefore, the principle applied in Wealth Tax Reference No. 43/93 would govern this reference. The operative direction is that the reference stands disposed of accordingly, with no order as to costs. The specific finding or ratio decidendi from the prior case is not detailed here, but it led to the affirmation of the ITAT's direction to levy tax at the normal rate.

What were the facts?

This is a Wealth Tax Reference No. 213 of 1996 before the High Court of Gujarat at Ahmedabad. The Income Tax Appellate Tribunal (ITAT), Ahmedabad, has referred a question for the opinion of the High Court under Section 27(1) of the Wealth Tax Act, 1957. The reference concerns the assessment of the assessee, Bharti Shalini Nap Trust, by the Commissioner of Wealth Tax. The specific facts of this case are not reproduced as they are stated to be similar to those in Wealth Tax Reference No. 43/93, which was decided on the same day. The procedural history leading to this reference involves the ITAT's decision and the subsequent reference to the High Court.

What were the issues?

1. Whether the appellate Tribunal is right in law and on facts in directing the Assessing Officer to levy the tax on the assessee trust at the normal rate? (Question of law and fact, concerning the Wealth Tax Act, 1957). Assessee's Contention: Not recorded in the judgment. Revenue's Contention: Not recorded in the judgment. The judgment states that the question is similar to one decided in Wealth Tax Reference No. 43/93, implying the arguments might have been similar or that the High Court's reasoning in the prior case would apply.

Which sections of the Income-tax Act were involved?

Section 27(1)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

WEALTH TAX REFERENCE No 213 of 1996

For Approval and Signature:

Hon'ble MR.JUSTICE R.K.ABICHANDANI and MR.JUSTICE A.R.DAVE ============================================================ 1. Whether Reporters of Local Papers may be allowed to see the judgements?

2.

To be referred to the Reporter or not?

3.

Whether Their Lordships wish to see the fair copy of the judgement?

4.

Whether this case involves a substantial question 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?

-------------------------------------------------------------- COMMISSIONER OF WEALTH TAX Versus BHARTI SHALINI NAP TRUST --------------------------------------------------------------

Appearance: B.B.NAYAK with MR MANISH R BHATT for Petitioner Respondent served

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

CORAM : MR.JUSTICE R.K.ABICHANDANI and MR.JUSTICE A.R.DAVE Date of decision: 29/01/98

ORAL JUDGEMENT (Per R.K.Abichandani,J.)

The Income Tax Appellate Tribunal, Ahmedabad has referred for the opinion of this Court the following question under Section 27(1) of the Wealth Tax Act, 1957. "Whether the appellate Tribunal is right in law and on facts in directing the Assessing Officer to levy the tax on the assessee trust at the normal rate?"

A similar question has been answered by us today in Wealth Tax Reference No. 43/93. Since the facts are similar and the question involved almost identical, we do not find it necessary to reproduce the facts of this case. For the reasons given by us in our judgement and order delivered in Wealth Tax Reference No. 43/93 today, we answer the question referred to us in the affirmative in favour of the assessee and against the Revenue. The reference stands disposed of accordingly with no order as to costs.

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*/Mohandas

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