COMMISSIONER OF WEALTH TAX vs. VAJUD GOPIKA TRUST

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WTR/160/1996HC GujaratGJHC24022090199629 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 of Gujarat, in its judgment delivered by R.K. Abichandani, J., answered the referred question in the affirmative, in favour of the assessee and against the Revenue. The Court stated that since the facts and the question involved were almost identical to those in Wealth Tax Reference No. 43/93, decided on the same day, it was not necessary to reproduce the facts or elaborate on the reasoning. The Court's decision in the earlier reference, which it applied here, held that the Appellate Tribunal was correct in its direction. The ratio decidendi is that the normal rate of wealth tax should be applied, not the maximum marginal rate, when the Tribunal so directs, based on the facts similar to the concurrently decided case. The reference stands disposed of accordingly, with no order as to costs.

What were the facts?

This case involves a Wealth Tax Reference No. 160 of 1996 before the High Court of Gujarat at Ahmedabad. The Income Tax Appellate Tribunal, Ahmedabad, referred a question for the opinion of the High Court under Section 27(1) of the Wealth Tax Act, 1957. The reference was made at the instance of the Commissioner of Wealth Tax against the decision of the Tribunal concerning the assessee, Vajud Gopika Trust. The specific facts of this case were not reproduced as they were deemed similar to those in Wealth Tax Reference No. 43/93, which was decided concurrently.

What were the issues?

1. Whether the Appellate Tribunal is right in law and on facts in directing the Assessing Officer to charge wealth tax at the normal rate as against the maximum marginal rate of 3% charged by the Wealth Officer (WTO)? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the Tribunal's direction to charge the normal rate implies the assessee likely argued for this treatment. Revenue's Contention: The revenue, through the Commissioner of Wealth Tax, challenged the Tribunal's direction, implying they supported the WTO's charge of the maximum marginal rate of 3%.

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 160 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 VAJUD GOPIKA TRUST

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Appearance: MR P.G. DESAI 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 charge rate at normal rate as against the maximum marginal rate of 3% charged by the WTO?"

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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