COMMISSIONER OF WEALTH TAX vs. LENTILE SARAV TRUST

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WTR/19/1996HC GujaratGJHC24021949199629 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, following its decision in a similar case (Wealth Tax Reference No. 43/93) decided on the same day, answered the referred question in the affirmative. This means the Tribunal was correct in directing the Assessing Officer to allow an exemption of Rs. 1 lakh while computing the wealth of the discretionary trust. The reasoning is based on the judgment delivered in Wealth Tax Reference No. 43/93, which is not detailed here. The reference stands disposed of accordingly, with no order as to costs. The specific principle or ratio decidendi from the earlier judgment is not elaborated upon in this excerpt.

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 the assessment of a discretionary trust, Lentile Sarav Trust, and the exemption of Rs. 1 lakh in computing its wealth. The High Court notes that the facts and the question involved are similar to another case, Wealth Tax Reference No. 43/93, decided on the same day. Therefore, the court did not find it necessary to reproduce the specific facts of this case, relying on the reasoning provided in the earlier judgment.

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? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: Not recorded in the judgment.

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 19 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 LENTILE SARAV 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 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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