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2014 (10) TMI 403 - HC - Wealth-taxDetermination of share of beneficiaries in a trust for the purpose of wealth tax - Applicability of section 21(4) - Whether the Tribunal is correct in holding that the Trust is a specific one and that the beneficiaries are known and their shares are determinate – Held that:- 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 indeterminate or unknown, the wealth-tax shall be levied upon and recovered from the court of wards, administrator-general, 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 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 u/s 21 (1) of the Act - the Tribunal found that Prince Shahmat Ali Khan alone has remainder interest, definite and determinable interest in the assessees Trust – Relying upon Commissioner Of Income-Tax, Bombay Versus Scindia Steam Navigation [1961 (4) TMI 6 - SUPREME Court] – the order of the Tribunal is upheld – Decided against revenue.
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