COMMISSIONER OF WEALTH TAX vs. ALFA NAP TRUST

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WTR/214/1996HC GujaratGJHC24022144199629 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, where the facts and the question involved were almost identical. The principle derived is that the ITAT's direction to levy tax at the normal rate was correct. The reference is disposed of accordingly, with no order as to costs. No issue was expressly left undecided.

What were the facts?

This is a Wealth Tax Reference No. 214 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 an assessment year not explicitly stated. The Commissioner of Wealth Tax is the petitioner, and Alfa Nap Trust is the respondent. The procedural history involves the ITAT referring a question of law to the High Court. The amount in dispute is not stated.

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). The Revenue's contention is not recorded. The Assessee's contention is not recorded. The judgment states that a similar question was answered today in Wealth Tax Reference No. 43/93, and the facts and question are almost identical, implying the arguments would be the same as in that case, but they are not detailed here.

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 214 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 ALFA 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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