1992 (2) TMI 113 - AT - Wealth-tax

Summary

Issues:
1. Interpretation of exemption under section 5(1)(xxiii) of the Wealth-tax Act, 1957.
2. Allowance of deduction for interest of beneficiaries and bank balance under section 5(1)(xxiii) of the Wealth-tax Act, 1957.
3. Legality of filing a Miscellaneous Application against a Reference Application under the Wealth-tax Act.

Analysis:
1. The case involved a Miscellaneous Application arising from an appeal filed by the assessee against the order of the CWT(A) denying exemption under section 5(1)(xxiii) of the Wealth-tax Act, 1957. The Tribunal reversed the CWT(A)'s decision and allowed the appeal, prompting the department to file a Reference Application. The Tribunal considered two questions for reference related to the entitlement of the assessee trust to exemption under section 5(1)(xxiii) and the deduction of specific amounts. The assessee's representative objected to the reference of the second question, arguing that it was a clear provision of law and did not require reference to the High Court.

2. The Tribunal deliberated on the power of rectification in the context of the Miscellaneous Application. The representative of the assessee cited a Supreme Court case to support the contention that rectification was inherent even after a reference application under section 27 of the Wealth-tax Act. However, the Tribunal clarified that the power of rectification under section 254(2) was limited to amending orders passed under that section. Section 35 of the Wealth-tax Act outlined the specific provisions for rectification by different authorities, emphasizing that once a statement of the case was prepared for reference to the High Court, the Tribunal could not rectify any mistakes.

3. The Tribunal further elucidated on the procedure for reference to the High Court under section 27 of the Wealth-tax Act. It explained that the statement of the case prepared by the Tribunal was not an order, and any mistakes had to be addressed before the High Court or the Supreme Court. The Tribunal emphasized that it was fundamental jurisprudence that lower courts or Tribunals could not rectify or modify matters pending before higher courts. Consequently, the Tribunal concluded that the Miscellaneous Application filed by the assessee lacked merit and was beyond its power to entertain at that stage, leading to the dismissal of the application.