COMMISSIONER OF WEALTH TAX vs. SAKASH ANGANA TRUST

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WTR/275/1996HC GujaratGJHC24022205199629 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 on 29/01/1998, answered the referred question in the affirmative, in favour of the assessee and against the Revenue. The Court noted that a similar question had been answered by them on the same day in Wealth Tax Reference No. 43/93. Since the facts and the question involved were almost identical to that previous case, the Court found it unnecessary to reproduce the facts of the present case. The reasoning for the decision is therefore based on the judgment in Wealth Tax Reference No. 43/93. The operative direction is that the reference stands disposed of accordingly, implying the Tribunal's order allowing basic exemption to the discretionary trust is upheld. No issue was expressly left undecided.

What were the facts?

The Commissioner of Wealth Tax (Revenue) has referred a question of law to the High Court of Gujarat at Ahmedabad under Section 27(1) of the Wealth Tax Act, 1957. The reference concerns an order passed by the Income Tax Appellate Tribunal, Ahmedabad. The assessee is Sakash Angana Trust. The specific assessment year(s) are not explicitly stated in the provided text. The dispute revolves around the allowance of basic exemption to the assessee trust, which was characterized as a discretionary trust. The procedural history involves the Tribunal's decision to allow the basic exemption, which the Revenue is challenging through this reference.

What were the issues?

1. Whether the Appellate Tribunal is right in law and on facts in directing the Assessing Officer to allow basic exemption when the assessee trust was a discretionary trust? (Question of law and fact, concerning the Wealth Tax Act, 1957). Assessee's contentions: Not recorded in the provided text. Revenue's contentions: The Revenue, through the Commissioner of Wealth Tax, is challenging the Tribunal's decision to allow basic exemption to a discretionary trust. The Revenue's argument is implicitly that a discretionary trust should not be eligible for basic exemption, as indicated by the question referred.

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 275 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 SAKASH ANGANA 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 basic exemption when the assessee trust was a 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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