COMMISSIONER OF WEALTH TAX vs. BITA NAP TRUST

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WTR/220/1996HC GujaratGJHC24022150199629 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 held that the appellate Tribunal was right in law and on facts in directing the Assessing Officer to levy the tax on the assessee trust at the normal rate. The Court's decision is based on its reasoning and order in a similar case, Wealth Tax Reference No. 43/93, decided on the same day. The principle established is that for wealth tax purposes, the assessee trust is entitled to be taxed at the normal rate, as per the Tribunal's direction. The reference is answered in the affirmative, in favour of the assessee and against the Revenue. The operative direction is that the reference stands disposed of accordingly.

What were the facts?

This is a Wealth Tax Reference case before the High Court of Gujarat at Ahmedabad. The Income Tax Appellate Tribunal, 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 trust, Bita Nap Trust. 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 by the same bench on the same day. The dispute revolves around the rate at which wealth tax should be levied on the assessee trust.

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? Assessee's contention: The assessee trust argues that the wealth tax should be levied at the normal rate. The judgment does not explicitly record the assessee's arguments, but their position is implied by the question referred and the outcome. Revenue's contention: The Revenue contends that the appellate Tribunal was not right in directing the Assessing Officer to levy the tax at the normal rate. The judgment does not explicitly record the Revenue's arguments, but their position is implied by the question referred and the outcome.

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 220 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 BITA NAP TRUST

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

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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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