9911796707
Advanced Search 
TMI Blog2001 (9) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... questions of law arise out of its appellate order. The proceedings have been initiated against the respondent, H.H. Rajdadi Smt. Badan Kanwar Medical Trust, in pursuance of the order under section 25(2) of the Wealth-tax Act passed by the Commissioner of Wealth-tax and assessment was made on the trust under section 16(3) by the assessing authority by issuing notice to it through its trustees. On appeal the Commissioner of Wealth-tax quashed the assessment orders on the ground that the trust was not assessable entity under the Wealth-tax Act, against which no proceeding could have been initiated. If at all, the assessment could have been made under section 21 of the Wealth-tax Act as a representative of those, on whose behalf or for whose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stion that no person other than a firm or individual, Hindu undivided family or company can be assessed under the Wealth-tax Act is obvious and stands concluded by the decision of the Supreme Court, no question of law which is required to be referred to the High Court for its opinion arose out of its order. Having heard learned counsel for the applicant, we are of the opinion that though the questions sought to be raised are questions of law the answer being self-evident and consideration of the questions on the merits being academic this court would not direct the Tribunal to submit the statement of case for answering those questions. Section 3 of the Wealth-tax Act is clear in its terms which is a charging section, that the only entitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of the charging section under the Indian Income-tax Act and the meaning ascribed to 'association of persons' therein. The Legislature, however, decided to exclude 'firms', 'association of persons' and 'body of individuals' from the ambit of the charge of wealth-tax. What has been specifically left out by the Legislature cannot be brought back within the ambit of the charging section by implication or by ascribing an extended meaning to the word 'individual' so as to include whatever has been left out." The court further explained the importance of insertion of section 21AA in CWT v. Ellis Bridge Gymkhana [1998] 229 ITR 1, etc., which permitted assessment of "association of persons" or "body of individuals" which made it possible to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blic trust it could not have been subject to section 21. Section 21 in the very nature of things is not attracted inasmuch as for the applicability of section 21 the beneficial ownership must vest in an individual, Hindu undivided family or company. In essence under section 21 the assessment in the hands of trust is in respect of taxable wealth administered by it for an individual, a Hindu undivided family or a company, but not in respect of a body of persons of indefinite composition, which is not at all a taxable entity under the Act under section 3 in view of the clear pronouncement of the apex court. Section 21A speaks of the individual liability of the trustees to be assessed in respect of that part of the asset or income which is div ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
