TMI Blog2014 (10) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... official trustee, receiver, manager, or other person aforesaid as if the persons on whose behalf or for whose benefit the assets are held were an individual who is a citizen of India and resident in India for the purpose of this Act - if Section 21(4) of the Act to be applied, the Wealth Tax can be levied and assessed on the Trust - Prince Moazam Jah Bahadur was the beneficiary of the Trust with remainder interest conferred on Prince Shahmat Ali Khan - The protective assessments were made u/s 21(4) of the Act on the ground that there was a dispute regarding the beneficiaries raised by the assessee in the assessment of Prince Shahmat Ali Khan - The Tribunal rightly came to the conclusion that Prince Shahmat Ali Khan is the sole beneficiary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1988 dated 30.04.1990 in the case of Prince Shahmat Ali Khan wherein it was held that the interest of the remainderman, Prince Shahmat Ali Khan was remote and illusory? ii) Whether on the facts and in the circumstances of the case, the ITAT is correct in holding that the provisions of Sec. 21 (4) are not applicable to the facts of this case in spite of the finding of the Supreme Court in the case of CWT V. Trustees of HEH Nizams Family (Remainder Wealth) Trust reported in 108 ITR 555 that the position as on a valuation date is to be presumed for the purpose of application of the provisions of Sec. 21(4) of the Act and such factual position would obviously include the Court litigation carried on by Sk.Fatima Fauzia, one of the daug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trustee, receiver, manager or trustee, as the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from the person on whose behalf or for whose benefit the assets are held, and the provisions of this Act shall apply accordingly. (2) Nothing contained in sub- section (1) shall prevent either the direct assessment of the person on whose behalf or for whose benefit the assets above referred to are held, or the recovery from such person of the tax payable in respect of such assets. (3) OMITTED intentionally as not necessary (4) Notwithstanding anything contained in this section, where the shares of the persons on whose behalf or for whose benefit any such assets are held are indete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be charged at the rates specified in Part I of the [Schedule 1[ .] 2[ Explanation.-- Notwithstanding anything contained in section 5, in computing the net wealth for the purposes of this sub- section in any case, not being a case referred to in the proviso, any assets referred to in clauses (xv), (xvi), (xxii), (xxiii), (xxiv), (xxv), (xxvi), (xxvii), (xxviii) and (xxix) of sub-section (1) of that section shall not be excluded.] (5) OMITTED intentionally as not necessary 3) As can be seen from the statutory provision for the purpose of applying Section 21(4) of the Act, the basic principle requisite condition that has to be satisfied is that the shares of the persons on whose behalf or for whose benefit any such assets are held are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on this dispute, the contention of the department is to the effect that in the facts of the case, the shares and beneficiaries of the Trust being uncertain and indeterminable, the department has option of making an assessment under Section 21(4) of the Act on the Trustees rather than on the beneficiaries. The Tribunal after elaborately considering the material on record and on appreciation of evidence came to the conclusion that Prince Shahmat Ali Khan is the sole beneficiary of the remainder interest of the Trust and there being no other rightful claimants under the Trust Deed on the relevant date had found Section 21(4) of the Act is inapplicable and the Trust is required to be assessed under Section 21 (1) of the Act. In other words, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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