COMMISSIONER OF WEALTH TAX vs. HAMMER ASTU TRUST

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WTR/217/1996HC GujaratGJHC24022147199629 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 of Gujarat answered the question referred by the ITAT in the affirmative, in favour of the assessee and against the Revenue. The reasoning for this decision is based on the judgment and order delivered in a similar case, Wealth Tax Reference No. 43/93, decided on the same day. The High Court found that the Tribunal was correct in directing the Assessing Officer to levy wealth tax on the assessee trust at the normal rate. The operative direction is that the reference stands disposed of accordingly, with no order as to costs. The specific principle or ratio decidendi from the referred case is not detailed here, but it led to the affirmation of the Tribunal's order.

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 reference pertains to an assessment year not explicitly stated in the provided text. The Commissioner of Wealth Tax is the petitioner, and Hammer Astu Trust is the respondent. The core of the matter is the ITAT's direction to the Assessing Officer to levy wealth tax on the assessee trust at the normal rate. 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 levy the tax on the assessee trust at the normal rate? The Revenue's contention, as implied by the question referred, is that the ITAT's direction to levy tax at the normal rate might be incorrect. The Assessee's position, conversely, is that the ITAT's direction is correct. The judgment does not explicitly detail the arguments presented by either the Revenue or the Assessee, beyond the framing of the question by the ITAT. It is stated that the facts and the question involved are almost identical to Wealth Tax Reference No. 43/93, which was also 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 217 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 HAMMER ASTU 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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