TMI Blog1982 (1) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... ing at 85, Park Street, Calcutta. The WTO held that the building was used partly for the residential purpose of the beneficiaries. The AAC, however, held that the assessee was not entitled to the exemption as the building in question vested in the trustee to be held by him in trust. According to him, one of the beneficiaries was allowed to use and occupy the premises No. 85, Park Street, Calcutta, but the property did not belong to such beneficiary and the conditions laid down in s. 5(1)(iv) of the W.T. Act had not been satisfied in this case. The assessee preferred an appeal to the Tribunal against the order of the AAC. The Tribunal held that the AAC was wrong in coming to the conclusion that the assessee was not entitled to the exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only in respect of one house or part of a house belonging to the assessee exclusively used by him for residential purposes. In this case the house at 85, Park Street, Calcutta, belongs to the official trustee and the official trustee does not use it for residential purposes and, therefore, the relief in question cannot be granted to the assessee. The assessee in this case is the official trustee and not the beneficiary. The argument advanced on behalf of the revenue, however, overlooks the basic fact that a trustee is assessed under the scheme of the W.T. Act only as a representative assessee although for certain purposes of the Act a trustee is an assessee. Section 21 of the W.T. Act makes it clear that wealth-tax shall be levied upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT [1959] 35 ITR 84 (Cal) (p. 86): " The very word 'assessee' has got, its meaning in the context of the Act. Sub-section (2) of section 2 of the Income-tax Act, defining 'assessee', says that it means a person by whom income-tax or any other sum of money is payable under this Act and includes every person in respect of whom any proceeding under this Act has been taken for the assessment of his income. Section 29 of the Income-tax Act dealing with the notice of demand uses the expression, 'assessee' or 'other person liable to pay such tax'. The other person may be any person whose liability is provided for in the Income-tax Act. Among such other persons it is obvious that the receiver is expressly said to be in the like manner and to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was assessed to wealth-tax, the residence of the beneficiary did not bring the case within the ambit of s. 5(1)(iv) of the Act. But in that case the question whether the expression "owner" in s. 9(1) of the Indian I.T. Act, l922, meant the legal owner or the beneficial owner was left open by the Bombay High Court. The Bombay High Court in that case held that in a case where the beneficiary was assessed to tax under s. .9 of the Indian I.T. Act, 1922, as owner of the property held under trust, he was entitled to claim relief under s. 9(2) of the Act. In our opinion, the reliance placed in the case of CIT v. Ganga Properties Ltd. [1970] 77 ITR 637 (Cal) is misplaced. In that case s. 9 of the Indian I.T. Act, 1922, came up for consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s than that of full ownership if the context so required. The question in this case is whether the assets held under trust Can be described as assets " belonging to " the trustee. The Supreme Court has held in the case of CWT v. Trustees of H.E.H.Nizam's Family (Remainder Wealth) Trust [1977] 108 ITR 555 at 593 thus: "This provision obviously can apply only where the trust properties are held by the trustee for the benefit of a single beneficiary or, where there are more beneficiaries than one, the individual shares of the beneficiaries in the trust properties are determinate and known. Where such is the case, wealth-tax can be levied on the trustee in respect of the interest of any particular beneficiary in the trust properties I in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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