COMMISSIONER OF WEALTH TAX vs. FRIDAY NORTH TRUST

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WTR/252/1996HC GujaratGJHC24022182199629 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 question referred to it in the affirmative, in favour of the assessee and against the Revenue. This means the Tribunal was correct in directing the Assessing Officer to levy wealth tax on the assessee trust at the normal rate. The reasoning is based on the judgment and order delivered in a similar case, Wealth Tax Reference No. 43/93, which had identical facts and involved almost the same question. The operative direction is that the reference stands disposed of accordingly, with no order as to costs. The specific principle or ratio decidendi is not elaborated in this judgment but is stated to be covered by the earlier decision.

What were the facts?

This is a Wealth Tax Reference No. 252 of 1996 before the High Court of Gujarat at Ahmedabad. The Income Tax Appellate Tribunal, Ahmedabad, has referred a question for the opinion of the Court under Section 27(1) of the Wealth Tax Act, 1957. The reference concerns the Commissioner of Wealth Tax versus Friday North Trust. The Court notes that the facts of this case are similar to those in Wealth Tax Reference No. 43/93, which was decided on the same day. The procedural history indicates that the Tribunal made a reference to the High Court for its opinion on a specific question of law and fact.

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? The Revenue's contention is implicitly that the Tribunal erred in directing the levy of tax at the normal rate. The Assessee's contention, by implication of the Tribunal's direction, is that the tax should indeed be levied at the normal rate. The judgment does not explicitly detail the arguments of each side but refers to a similar case (Wealth Tax Reference No. 43/93) where the facts and questions were identical. The core issue revolves around the applicable rate of wealth tax for the assessee trust.

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 252 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 FRIDAY NORTH 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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