TMI Blog2010 (1) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... By mean of these reference application relating to the assessment year 1983-84 and 1984-85 the following common questions have been raised:- "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the shares of the beneficiaries of the trust were not known and determinate as on the relevant valuation date? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessment made in the status of AOP was valid? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessment made u/s 21 (4) of the Wealth tax Act is valid inspite of the fact that section 21(4) covers only the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the Trust as follows:- i) M/s. Puja Investment Pvt. Ltd. 87 % ii) M/s. Anadi Investment Pvt. Ltd. 12 % Beneficiaries to the corpus as per definition in Chapter II were:- a) M/s. Puja Investments Pvt. Ltd. b) M/s. Anadi Investments Pvt. Ltd. The duration of the Trust was also defined in para 3 of Chapter II as under:- "Date of distribution or date of termination or date of closing of the trust shall be the date of death of the last survivor lineal descendants of Lala Bahadur Chand Munjal who are living as on the date of settlement or such other earlier date as the trustees may, in their discretion, decide." The distribution of the corpus was to take place as per clause 2 of Chapter IV of the Trus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon'ble Tribunal vide order dated 8.12.95 holding that the assessment was correctly made u/s 21(4) of the Wealth Tax Act. The relevant findings of the Hon'ble Tribunal are recorded in para 13 of the order as under:- "13. In the context of section 21 of the Wealth Tax Act, it has been held that the question in regard to the applicability of section 21(1) of that Act, which is on the lines of section 161 of 1961 Act, or section 21 (4) of the Wealth -tax Act which is on the lines of section 164(1) of the 1961 Act, has to be determined with reference to the relevant valuation date. We have, therefore, to see in the present case as to whether the shares of the beneficiaries upto the payment of Rs. 4 lakhs to the creditors i.e. to the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal recorded that the shares of the beneficiaries upto payment of Rs. 4 lacs to the creditors i.e. to primary beneficiaries, were not known and determinate as on the relevant valuation date. It was also contended by the applicant that the share of the beneficiaries were known and determinate as on the relevant valuation date because the position has been seen as if the trust had expired on the relevant valuation date and submitted that there arose important question of law which should be referred for the esteemed opinion of the Hon'ble Punjab and Haryana High Court. The WTO has made the assessment on the Trust in the status of AOP and has applied the provisions of Sec. 21 (4) of the Wealth Tax Act as according to him the shares of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indeterminate or unknown, assessment has to be made in the case of the trustees under section 21(4). However, where specific amounts are determined to be paid at certain interval, the interest of such beneficiaries in the Trust is known and in such case section 21(1) is attracted and not section 21(4) as in the present case. Further the learned counsel for the assessee Mr. Bhan also relied upon the Kerala High Court judgment in the case of CWT vs. Dr. David Joseph, Executor of Trust No. 1 (1995) 213 ITR 156 (Kerala) held that:- "The position has to be seen on the relevant valuation date as if the event which leads to the expiration of the Trust, took place on that date, and if, on that hypothesis, it is possible to determine who pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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