COMMISSIONER OF WEALTH TAX vs. BIRJU SHALINI TRUST

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WTR/17/1996HC GujaratGJHC24021947199629 January 1998Author: HONOURABLE MR. JUSTICE R.K.ABICHANDANI,HONOURABLE MR. JUSTICE ANIL R. DAVE2 pages
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What did the High Court hold?

The High Court, following its decision in Wealth Tax Reference No. 43/93, answered the question referred in the affirmative, in favour of the assessee and against the Revenue. The reasoning is that the facts and the issue are identical to the previously decided case. Therefore, the Tribunal was correct in directing the Assessing Officer to allow the exemption of Rs. 1 lakh while computing the wealth of the discretionary trust. The ratio decidendi is that if the facts and the legal issue are identical to a previously decided case by the same court, the same decision will apply. The reference stands disposed of accordingly.

What were the facts?

This case involves a reference made by the Income Tax Appellate Tribunal (ITAT), Ahmedabad, to the High Court of Gujarat concerning the Wealth Tax Act, 1957. The Commissioner of Wealth Tax is the petitioner, and Birju Shalini Trust is the respondent assessee. The assessment year(s) are not explicitly stated. The dispute revolves around the ITAT's direction to the Assessing Officer to allow an exemption of Rs. 1 lakh while computing the wealth of the discretionary trust. The High Court notes that the facts are similar to another case, Wealth Tax Reference No. 43/93, decided on the same day.

What were the issues?

1. Whether the Appellate Tribunal is right in law and on facts in directing the Assessing Officer to allow exemption of Rs. 1 lakh while computing the wealth of the assessee discretionary trust? (Question of law and fact, concerning the Wealth Tax Act, 1957). The Revenue's contention is not recorded in the judgment. The Assessee's contention is not recorded in the judgment. The judgment states that the facts and the question involved are almost identical to Wealth Tax Reference No. 43/93, which was decided on the same day.

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 17 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 BIRJU SHALINI 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 allow exemption of Rs. 1 lakh while computing the wealth of the assessee discretionary trust?"

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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