TMI Blog1972 (11) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... " the Act "). These appeals relate to the wealth-tax assessment of the appellant-assessee for the assessment years 1957-58 and 1958-59 the relevant valuation dates being December 31, 1956, and December 31, 1957. The two questions of law referred to the High Court are: " 1. Whether on a true construction of the indenture of trust dated June 11, 1941, the trustees of the trust constitute an assessable unit under the provisions of the Wealth-tax Act ? 2. Whether the property held by the trustees under the identure of trust dated June 11, 1941, is held for any public purpose of a charitable or religious nature in India within the meaning of section 5(1)(i) of the Wealth-tax Act? " The High Court has answered both these questions i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 (rupees five) per month may be paid as and by way of maintenance to any poor unmarried female Vaishaya Hindoo or a poor Vaishaya Hindoo or a poor Vaishaya Hindoo widow who may be deserving of help. (t) Rs. 500 (rupees five hundred) may be expended or given for the purpose of meeting the expenses of marriage of any poor male Vaishaya Hindoo who may be deserving of help. (u) Rs. 500 (rupees five hundred) may be expended or given for the purpose of meeting the expenses of marriage of any poor female Vaishaya Hindoo who may be deserving of help." The deed further provides: " If the income of the trust estate is not sufficient to carry out the charities specified in sub-clauses (a) to (u) above the charity specified in an earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessary to refer to three provisions in the Act viz., sections 3, 5(1)(i) and 21. Section 3 is the charging section. It says : " Subject to the other provisions contained in this Act, there shall be charged for every assessment year commencing on and from the first day of April, 1957, a tax (hereinafter referred to as wealth-tax) in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company at the rate or rates specified in the Schedule." Section 5 provides for exemption in respect of certain assets. One of the exemptions provided is in respect of any property held by an assessee under trust or other legal obligation for any public purpose of a charitable or religious nature i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was that trustees could not be assessed under the Act as section 21(1) of the Act provides for assessing the trustees who held the trust property " on behalf of " others. In law, a trustee does not hold the trust property " on behalf of " others. Hence, trustees cannot be assessed to tax under the Act. That contention was rejected by this court. No contention was raised in that case that trustees did not come within the scope of section 3 of the Act. The judgment in that case proceeded on the basis that trustees can be assessed to wealth-tax in respect of the trust property of which they are trustees. There is also no dispute that section 5(1)(i) of the Act proceeds on the basis that a trust property comes within the scope of the Act. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught within the net of taxation a Mappilla Marumakkattayam family. As seen earlier, under section 3 of the Expenditure-tax Act, the only entities which are mentioned are individuals or Hindu undivided family. This court came to the conclusion that Mappilla Marumakkattayam family could also be assessed as an individual. In Suhashini Karuri v. Wealth-tax Officer, Calcutta the Calcutta High Court opined that joint trustees could be assessed as individuals under the Act. A similar view was taken by the Bombay High Court in Abhay L. Khatau v. Commissioner of Wealth-tax. We are in agreement with that view. We, accordingly, agree with the High Court and hold that the trustees of the trust, with which we are concerned in these appeals, constitut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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