9911796707
TMI Blog1999 (5) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be applied in the case of the assessee-trust and whether its wealth has to be taxed at the appropriate rate and not at the rate it was charged by the Wealth-tax Officer?" The assessee is a trust brought into existence by a deed of settlement dated March 30, 1972. The trust was created for giving financial help to the employees who were defined and the members of their families for the purpose of educations medical relief, providing gainful employments housing, expenses on marriage and other social obligations, etc. The trustees had uncontrolled discretion to give moneys for those purposes. The Wealth-tax Officer assessed the trust as an association of persons, accepted the net wealth returned by the trust which was otherwise duly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions in which the main provision would not be applicable, and the tax was to be charged as if the whole or part or total income is of an association of persons. In such cases the maximum marginal rate of 65 per cent. could not be levied. The decision under the Income-tax Act rested on the conclusion that clause (i) of the proviso applied to cases where none of the persons had other income chargeable to tax under this Act (Income-tax Act, 1961) and, therefore, the provision levying maximum marginal rate at 65 per cent. on the income governed by sub-section (1) of section 164 was not applicable. Applying the decision which we are told was subsequently affirmed by this court on a reference being made to it, the assessment under the Wealth-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unless the shares of the persons on whose behalf or for whose benefit such assets are held on the relevant valuation date are expressly stated in the order of the court or instrument of trust or deed of wakf, as the case may be, and are ascertainable as such on the date of such order, instrument or deed." We find that no corresponding provision existing under the Wealth-tax Act under the proviso to sub-section (4) of section 21 which corresponds to clause (i) of the proviso to section 164(1) of the Income-tax Act. In the Income-tax Act, in a case where none of the beneficiaries has any other income chargeable under the Income-tax Act the rigour of the substantial provision of charging tax at the rate of 65 per cent. was mitigated, by pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee urged that the tax would still not be leviable because under the Wealth-tax Act, an association of persons is not an assessable entity but the assessable entities are only individual, Hindu undivided family, or the company and sub-section (4) of section 21 which operates notwithstanding other provisions of section 21 does not preclude the applicability of other provisions of the Act including the exemption limit provided under the Schedule on which no tax is leviable. We are afraid both the questions do not arise out of the Tribunal's order which could be examined by us. It is for the Tribunal when it decides the appeal again in the light of the decision rendered by this court in this reference to consider and decide these iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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