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TMI Blog2001 (3) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest of the beneficiary can be regarded as an asset for the purpose of levy of wealth-tax. The assessment years are 1976-77 to 1982-83. The assessees had claimed that, such interest was not taxable, and that in the event of it being considered capable of being brought to tax, the same will have to be valued in accordance with the mode of valuation set out in the decision of the Supreme Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment made by the Wealth-tax Officer, the beneficial interest of the assessees in the trust property was not valued in accordance with the mode of valuation set out in the judgment of the Supreme Court in the case of CWT v. Trustees of H. E. H. Nizam's Family (Remainder Wealth) Trust [1977] 108 ITR 555 at pages 595 to 596. That mode of valuation results in certain discounts on the present market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he fact that the asset is contingent is relevant for the purpose of valuation. But, it remains an asset which requires to be valued as it constitutes an asset of the assessees who admittedly have a right to receive the corpus of the trust at a future point of time. In this case, the trust deed is dated March 31, 1978. Clause 3B of the trust deed provides that the assessees, Soma Sundaram and Me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to receive the corpus of the trust at the end of the 15 year period to the extent of 1/4th each of that corpus. The mere fact that the rights of the assessees to receive the corpus of the trust stood postponed by 15 years, during which the assessees were only entitled to a share in the income of the trust, does not render the beneficial interest of the assessees in the corpus an interest inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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