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TMI Blog2015 (2) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... the respective shares. Since the wealth is under the administration of the Trust, the Wealth Tax Officer dealt with the same under Section 21 of the Act. This provision maintains a dichotomy. In case the Trust is created in favour of any specified persons, sub-section (1) places the obligation to pay the wealth tax shall be on the Court of Wards, Administrator-General, Official Trustee, Receiver, Manager or Trustee, as the case may be, to the same extent, as it would have been recoverable from the person, on whose behalf or for whose benefit the assets are held (beneficiaries). Where, however, the Trust Deed or other similar document is silent about the particulars of beneficiaries, a different procedure is prescribed under sub-section (4) thereof, including the rate of tax. In the instant case, the Wealth Tax Officer sought to levy tax, by taking recourse to Section 21 (4) of the Act. Aggrieved by that, the Trustees i.e. the respondents filed appeals before the Commissioner. Three appeals preferred by the respondents before the Commissioner were allowed. Challenging the same, the Revenue preferred further appeals before the Income Tax Appellate Tribunal, Hyderabad Bench B (for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey acquire interest in the trust property only after the life time of the ladies namely Sb.Fatima Fouzia and Sb.Amina Marzia? (2) Whether on the facts and in the circumstances of the case, the ITAT is correct in law in reversing the decision of the CIT (A) who held that the interest of the beneficiaries in the Trust property was assessable under Section 164 of the Act? R.A.Nos.159 & 160/HYD/1996: (1) Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the question of succession opens only on the death of Sb.Fatima Fouzia/Sb.Amina Marzia, the life time beneficiary after having held that her interest in the Trust ceased on the sale of the jewellery? (2) Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the shares of the beneficiaries are unknown and indeterminate and hence the assessment should be made under Section 164(1) of the Income Tax Act, 1961? Accordingly, they were framed and referred to this Court through an order, dated 17.07.1995, by the Tribunal. Independently, the income of the beneficiaries was also assessed under the Income Tax Act. The effect of the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntative assessments made in the hands of the children of Sb.Fatima Fouzia? (3) Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in holding the view that the trustee did not receive the capital gains income or sale proceeds of the jewellery for on behalf of the children of Sb.Fatima Fouzia? (4) Whether on the facts and in the circumstances of the case, the Tribunal was correct in holding that the shares of the beneficiaries are unknown and indeterminate and hence the assessment should be made under Section 164 (1) of the Income Tax Act, 1961? R.A.No.362/Hyd/94: (1) Whether on the facts and in the circumstances of the case, the Tribunal was correct in holding that the shares of the beneficiaries are unknown and indeterminate and hence the assessment should be made under Section 164(1) of the Income Tax Act, 1961? Sri S.R. Ashok, learned Senior Standing Counsel for the Income Tax Department, submits that the conferment of the wealth under the Trust, was in the form of life interest during the life time of the two ladies mentioned in the Trust Deed and there was no occasion for them to be treated as beneficiaries. He contends that though t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by a duly executed instrument in writing, whether testamentary or otherwise (including a trustee under a valid deed of wakf), the wealth-tax shall be levied upon and recoverable from the court of wards, administrator-general, official 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. Section 21 (4): Notwithstanding anything contained in the foregoing provisions of this section, where 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 the case may be, in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India] for the purposes of this Act, and (Portion of the provision, not relevant for this case, is omitted) The key expression that p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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