CWT v. Trustees of H.E.H. Nizam’s

108 ITR 555Supreme Court of India1977#2492 most cited

What is CWT v. Trustees of H.E.H. Nizam’s authority for?

Where the shares of beneficiaries in a trust are determinate, trustees must be assessed separately for each beneficiary's share, treating each beneficiary as an individual. The income is then taxed at the marginal rate applicable to individuals, not at the maximum rate for an association of persons.

46

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2026.

Also referred to as

CWT v. Trustees of H.E.H. Nizam’s · 108 ITR 555 · trust assessment · trustee assessment · determinate beneficiaries shares · maximum rate vs marginal rate · Section 161 · Section 164 · Section 166 · separate assessments for beneficiaries · individual status assessment · representative assessee

Sections most often in play

Section 143(1)Section 160Section 164Section 167BSection 250Section 4Section 154Section 161

Issues it is cited on

section 250persontotal incomeinterest

Judgments citing CWT v. Trustees of H.E.H. Nizam’s

M/S. Archana Female Child Trust, Chennai vs. ACIT, Bangalore

The appeals of the assessees stand allowed

ITA 2179/CHNY/2016[2014-15]Status: DisposedITAT Chennai27 Dec 2016AY 2014-15

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singhआयकर अपील सं./Ita Nos.2177 & 2185/Mds/2016 "नधा"रण वष" / Assessment Years : 2014-15 & 2013-14

Section 143(1)Section 164(1)

…through the parent trust, the income from house property and interest income from fixed deposit with Suguna Industries. The CIT(Appeals) by placing reliance on the judgment of Apex Court in CWT v. Trustees of H.E.H. Nizam’s family (Remainder Wealth) Trust (108 ITR 555), found that the Revenue had the option to assess the beneficial interest either in the hands of the trustee in a representative capacity or assessee directly in the hands of the beneficiary. In both the cases, what was taxed was the interest of the beneficiary for the trust properties and not the corpus of the trust properties. Therefore, accor…

M/S. Anish Kumar Female Child Trust, Chennai vs. ACIT, Bangalore

The appeals of the assessees stand allowed

ITA 2178/CHNY/2016[2014-15]Status: DisposedITAT Chennai27 Dec 2016AY 2014-15

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singhआयकर अपील सं./Ita Nos.2177 & 2185/Mds/2016 "नधा"रण वष" / Assessment Years : 2014-15 & 2013-14

Section 143(1)Section 164(1)

…through the parent trust, the income from house property and interest income from fixed deposit with Suguna Industries. The CIT(Appeals) by placing reliance on the judgment of Apex Court in CWT v. Trustees of H.E.H. Nizam’s family (Remainder Wealth) Trust (108 ITR 555), found that the Revenue had the option to assess the beneficial interest either in the hands of the trustee in a representative capacity or assessee directly in the hands of the beneficiary. In both the cases, what was taxed was the interest of the beneficiary for the trust properties and not the corpus of the trust properties. Therefore, accor…

M/S. Anish Kumar Education Trust, Chennai vs. ACIT, Bangalore

The appeals of the assessees stand allowed

ITA 2177/CHNY/2016[2014-15]Status: DisposedITAT Chennai27 Dec 2016AY 2014-15

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singhआयकर अपील सं./Ita Nos.2177 & 2185/Mds/2016 "नधा"रण वष" / Assessment Years : 2014-15 & 2013-14

Section 143(1)Section 164(1)

…through the parent trust, the income from house property and interest income from fixed deposit with Suguna Industries. The CIT(Appeals) by placing reliance on the judgment of Apex Court in CWT v. Trustees of H.E.H. Nizam’s family (Remainder Wealth) Trust (108 ITR 555), found that the Revenue had the option to assess the beneficial interest either in the hands of the trustee in a representative capacity or assessee directly in the hands of the beneficiary. In both the cases, what was taxed was the interest of the beneficiary for the trust properties and not the corpus of the trust properties. Therefore, accor…

ACIT, Bangalore vs. M/S Icici Emerging Sector Fund, Bangalore

In the result, all the thirteen appeals of the revenue are dismissed

ITA 505/BANG/2013[2009-10]Status: DisposedITAT Bangalore27 Jul 2016AY 2009-10

Bench: Shri Sunil Kumar Yadav & Shri A.K.Garodia, Accounant Member

For Appellant: Shri S.E.Dastur, Senior AdvocateFor Respondent: Mrs. Neera Malhotra, CIT &
Section 199

…ssociation of persons in existence and therefore the assessee should not be taxed at the maximum marginal rate. (1) A. K. Gopala Pillai v. Agricultural ITO [1970] 75 ITR 120 (Mad); (2) CWT v. Trustees of H.E.H. Nizam's Family (Remainder Wealth) Trust [1977] 108 ITR 555 (SC); (3) CIT v. K. Shyamaraju (Trustees) [1991] 189 ITR 392 (Kar); and (4) Laxmipat Singhania v. CIT [1969] 72 ITR 291 (SC). 6 ITA Nos.505(B)/13, 533-535(B)/14, 633- 638(B)/13, 697(B)/15 & 836-838(Bang)2013 8. The Assessing Officer without discussing the facts of those cases and the ratio laid down in those decisions and as to how the facts o…

Mrs. Sharon Nayak, Bangalore vs. DCIT, Bangalore

In the result, appeal of the assessee is partly allowed for statistical purpose

ITA 1594/BANG/2014[2008-09]Status: DisposedITAT Bangalore27 May 2016AY 2008-09

Bench: Shri. Sunil Kumar Yadav & Shri. Abraham P. Georgei.T.A No.1594/Bang/2014 (Assessment Year : 2008-09) Mrs. Sharon Nayak, 203, Inland Exotic Apt, 14, Benson Road, Bangalore 560 046 .. Appellant Pan : Abkpn7007P V. Deputy Commissioner Of Income-Tax, Circle – 5(1), Bangalore .. Respondent Assessee By : Shri. S. Ramasubramaniyan, Ca Revenue By : Dr. P. K. Srihari, Addl. Cit Heard On : 05.05.2016 Pronounced On : 27.05.2016 O R D E R Per Abraham P. George:

For Appellant: Shri. S. Ramasubramaniyan, CAFor Respondent: Dr. P. K. Srihari, Addl. CIT
Section 161Section 17(3)Section 56Section 56(2)(i)Section 56(2)(vi)

…tion 166 the Revenue had an option in the case of the income of a discretionary trust either to make an assessment upon the trustees or to make an assessment upon the beneficiaries. In CWT v. Trustees of H. E. H. Nizam's Family (Remainder Wealth) Trust [1977] 108 ITR 555 (SC), this court was dealing with the provisions of the Wealth-tax Act, 1957, analogous to sections 160 to 166 of the Act and sections 40 and 41 of the 1922 Act. Section 21(1) of the Wealth-tax Act stated that in the case of assets chargeable to tax thereunder which were held, inter alia, by a trustee appointed under a trust deed, wealth- tax "sh…

Yatra Art Fund II, Chennai vs. Asst CIT Cen Cir 44`, Mumbai

In the result, appeal filed by the assessee is treated as allowed for statistical purposes

ITA 3720/MUM/2014[2009-10]Status: DisposedITAT Mumbai12 Feb 2016AY 2009-10

Bench: Shri Saktijit Dey & Shri Ashwani Tanejaassessment Year: 2009-10 Yatra Art Fund Ii, Asst Cit Cir 44 J. Prabhakar Cas, Residency बनाम/ Apartment, 245, T.T.K. Rd, Vs. Alwarpet Mumbai Chennai-600018 (Assessee) (Revenue) P.A. No.Aaaty1545J "नधा"रती क" ओर से / Assessee By Shri J. Prabhakar (Ar) Shri Nitin Waghmode (Dr) राज"व क" ओर से / Revenue By 19/01/2016 सुनवाई क" तार"ख / Date Of Hearing : 12/02/2016 आदेश क" तार"ख /Date Of Order: आदेश / O R D E R Per Ashwani Taneja (): This Appeal Has Been Filed By The Assessee Against The Order Of Ld. Commissioner Of Income Tax (Appeals)-38, Mumbai {(In Short ‘Cit(A)’}, Dated 24.02.14 For The Assessment Year 2009-10, Passed Against The Assessment Order Passed By The Assessing Officer (In Short ‘Ao’) U/S 143(3) Of The Act.

Section 143(3)Section 161Section 40

…ing the beneficiaries. The assessment of the trustee would have to be made in the same status of the beneficiary, whose interest is sought to be taxed in the hands of the trustee. The Supreme Court in the case of H.E.H Nizam's Family (Remainder Wealth) Trust [108 ITR 555] permitted one consolidated assessment order and in such order, the tax due in respect of each beneficiary will have to be specified 4 Yatra Art Fund separately. In this case, the beneficiaries are individuals and companies and if one consolidated assessment has to be made, then the status will have to change according to the beneficiary and in…