Individual assessments of beneficiaries u/s 21(1) of Wealth-tax Act 1957. - Income Tax - 1248/CBDT

INSTRUCTION NO. 1248/CBDT Dated : April 9,1979 Instances have come to light where the interests of beneficiaries in trusts have escaped assessment inasmuch as they have neither been included in the individual assessments of the beneficiaries nor have they been assessed in the hands of the trustees under section 21(1) of the Wealth-tax Act 1957. 2. The matter has been examined by the Board. It is felt that such lapses generally occur because of either inadequate scrutiny of the earlier records of the case or lack of proper liaison between the Wealth-tax Officers assessing the beneficiaries and these assessing the trustees concerned. 3. The Board, therefore, desire that the Wealth-tax Officer assessing the beneficiary should not only properly scrutinise the relevant records but also ascertain from the Wealth-tax Officer assessing the trusts concerned, the correct position, for each assessment year, as to whether the interest of the beneficiary has been assessed in the hands of the trustees or not. The assessment should be completed by him only thereafter. The Board further desire that the Wealth-tax Officer assessing the trustees under section 21(1) of the Wealth-tax Act should also invariably intimate the Officer(s) having jurisdiction over the beneficiaries about the action taken by him in respect of the interests of the beneficiaries in the trust concerned.