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2007 (5) TMI 179 - HC - Wealth-taxWealth tax - Tribunal on basis of assessee s own decided that impugned concern is not a benami concern of assessee and deleted the addition representing value of assets tribunal was justified in deciding that issue in favor of assessee no question of law arise so no reference is called
Issues: Whether Kalinga Foundation Trust was a genuine Trust or a benami concern of the assessee.
Analysis: The judgment pertains to a petition filed by the Revenue under Section 27(3) of the Wealth Tax Act, 1957, seeking reference of a question of law to the High Court. The question raised was whether the Tribunal was correct in upholding the order of the Commissioner of Wealth Tax (Appeals), deleting the addition representing the value of assets claimed to be owned by Kalinga Foundation Trust, which was alleged to be a benami concern of the assessee. The Commissioner of Wealth Tax had earlier held that the Trust was not a benami concern based on previous orders. The Tribunal, relying on its earlier decisions, affirmed this conclusion. The Revenue sought a reference to the High Court, but the Tribunal declined, stating that the issue had become academic due to the passage of time. The judgment highlighted the absence of any pending reference in the High Court regarding the issue raised by the Revenue. Additionally, it referenced a decision of the Orissa High Court involving a similar issue concerning Kalinga Foundation Trust being a benami concern of the assessee. In the Orissa case, the Income Tax Officer's conclusion was not accepted due to the unavailability of witnesses for cross-examination, with most of them deceased or incapacitated. The Orissa High Court observed that the issue had become irrelevant due to supervening circumstances. Based on the facts presented and the precedents cited, the High Court dismissed the petition, concluding that the issue had become purely academic over time. The judgment emphasized that the decision of the Tribunal regarding the status of Kalinga Foundation Trust as not being a benami concern of the assessee stood, and no pending reference existed in the High Court on the matter. Consequently, the High Court declined to call for a reference from the Tribunal, considering the issue moot in light of the circumstances and the passage of time.
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