TMI Blog2012 (12) TMI 1098X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment years 1972-73 to 1978-79:- 1. Whether in law and circumstances of the case the I.T.A.T. was justified in holding that the assessee Trust was a Public Charitable Trust and the wealth of the Trust was exempt u/s 5 (1) (i) of the Wealth-tax Act, 1957. 2. Whether in law and in the circumstances of the case, the I.T.A.T. was justified in upholding the order of the C.W.T. (Appeals) holding that the Trust was not hit by the provisions of Section 13 (2) (b) read with Section 13 (1) (c) of the Income-tax Act, 1961 and accordingly assets held by it are not subject to wealth-tax? 3. The assessee is a Public Charitable Trust. It claimed exemption from levy of wealth-tax in terms of Section 5 (1) (i) of the Wealth Tax Act, 1957, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... previous years, for the subject assessment years also the wealth of the appellant was exempt under Section 5 (1) (i) of the Wealth Tax Act, 1957. 6. It may be noted that in respect of same Trust for the assessment years 1971-72 and 1974-75 in WTR No.95 of 1991 the question as to whether the Tribunal was justified in holding the order of the CWT (Appeals), and holding the objects of the Public Charitable Trust so as to claim exemption under Section 5 (1) (i) of the Act, was decided by the High Court in favour of the respondent-assessee and against the revenue. The High Court in its judgment dated 1.5.2007 observed that for the assessment years in question the matter was taken up by the assessee before the Settlement Commission, which by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was held to be exempt from tax. The Division Bench of the High Court found that last two assessment years under reference were squarely covered by the order of the Settlement Commission against which special leave petition has been dismissed. It is thus to be accepted that the assessee Trust was treated as Public Charitable Trust for these two years. Section 5 (1) (i) of the Act provides that wealth tax shall not be payable by an assessee in respect of any property held by him in Trust for any public purpose of charitable or religious nature and such assets are also excluded from the net wealth of the assessee and therefore the Tribunal was justified in upholding the order of CWT (Appeals) that the assessee was entirely a Public Charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 4 (3) (i) of the Income Tax Act, was decided in favour of the department and against the assessee. 9. Shri Chopra has also relied upon meaning of charitable purposes in a Public Charitable Trust in CIT v. Palghat Shadi Mahal Trust, 1990 ((181) ITR 287, and Addl. Commissioner of Income-Tax, Gujarat v. Surat Art Silk Cloth Manufacturers Association, 1980 (121) ITR page 2, in submitting that the income of the trust, which has been spent on the maintenance of the members of Sherwani Family cannot be treated to be charitable object and should not be exempt from wealth tax. 10. Shri V.B. Upadhyay, learned counsel appearing for the respondent assessee submits that in WTR No.95 of 1991 decided on 1.5.2007, the same question was con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt on reference has to be followed by the department. In Smt. Kilasho Devi Burman Ors. v. Commissioner of Income Tax, 219 ITR 214 it was held that the High Court can even call for supplementary statement of the case. 13. The question as to whether the findings of the Supreme Court in Civil Appeal No.6874 of 2000 decided on 9th October, 2001 were subject matter of consideration in WTR No.95 of 1991, which was also pending and was decided on 1.5.2007 between the same parties, when the Supreme Court held on 9th October, 2001, that fraud was played by rectification of the trust deed by altering the object of the trust, this Court had considered the question as to whether the directions of the Apex Court that its observation will not affect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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