TMI Blog2001 (9) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue that the trust is being assessed under section 21AA, of which the individuals or beneficiaries are identifiable but their share in the net assets is not determinable or indeterminate so as to make it possible to assess the trust or trustees as an association of persons or body of individuals. - The answer being self-evident, we are not inclined to entertain this application. Accordingly, the same is rejected. - - - - - Dated:- 15-9-2001 - Judge(s) : RAJESH BALIA., JAGAT SINGH. JUDGMENT Heard learned counsel for the applicant. This is an application under section 27(3) of the Wealth-tax Act, 1957, for requiring the Income-tax Appellate Tribunal, Jodhpur Bench, Jodhpur, to submit the statement of case and refer the questions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust as an assessable entity were invalid and no proceedings could have been initiated against it. Thus finding the initiation of proceedings to be invalid, the order of the Commissioner of Wealth-tax (Appeals) was maintained. The Revenue had relied on section 21A for the purpose of sustaining the assessment. The Tribunal repelled that contention. It held that in that event notices were required to be issued to the representative trustee who fell in the category against whom the assessment could be proceeded under section 21A of the Act on fulfilment of the conditions. The said provision does not authorise levy of the tax on the trust as such. It is in the aforesaid facts and circumstances, the Department has made an application under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charging section by clear words used in the section. No one can be taxed by implication, A charging section has to be construed strictly. If a person has not been brought within the ambit of the charging section by clear words, he cannot be taxed at all..." Referring to the phraseology used in cognate taxing statutes like the Indian Income-tax Act, 1992, and the Gift-tax Act, 1958, and existing decided cases considering the charging sections of the Indian Income-tax Act, 1922, the court said: "When the Wealth-tax Act, 1957, was passed, the Legislature decided to specify only 'individual, Hindu undivided family and company' as units of assessment. It will not be right to presume that the Legislature was unaware of the wording of the cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21AA was inserted to bring to tax net wealth of an association of persons where individual shares of the members of the association were unknown or indeterminate." The trust as such is not an assessable entity. The trust is not a juristic person nor does it exist as an assessable entity against which any proceedings could be initiated or installed for the purpose of assessment. The only provision on the basis of which even notices to the assessee could be issued to any person are under section 21 or 21A or 21AA. Section 21 envisages assessment of the share of a beneficiary to be assessed in the hands of the Court of Wards, administrators or the trustee discharging that trust. This obviously is not at all the case of the Revenue, that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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