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2011 (8) TMI 440 - HC - Wealth-taxExemption from payment of wealth tax u/s 5(1)(i) of the Wealth Tax Act - trust deed executed by Medical Relief Society of South Canara Manipal - sponsor and provide educational facilities for catering courses - Trust executed a deed in favour of the assessee transferring both movable and, immovable property.The said transfer was treated as a gift - Revenue contended creation of the Trust, transfer of the Hotel property, running of the college was only a device to avoid tax Further the activities of the Trust are commercial in nature. There is no charitable activity. The assessee is not entitled for exemption u/s 10(22) - Deed did not transfer the ownership of the hotel property to the appellant. It only gives a very limited interest in the hotel properly - Decided that exemption granted under Section 10(22) of the Income Tax Act continues to apply to the assessee even to this day - Section 5(1)(i) of the Wealth Tax Act provides wealth tax shall not be payable by an assessee in respect of the assets mentioned therein which included property held by him under trust or other legal obligation for any public purpose of a charitable or religious nature in India - Hence held that wealth tax is not payable by the assessee - Appeal of revenue dismissed.
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