9911796707
TMI Blog1996 (10) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... as a result thereof. The assessee-trust is created by a deed dated March 15, 1972, executed by one C. G. Kesavan Vaidyar, his wife and two sons. The object of the trust was to provide education, medical relief and relief to the poor. This assessee-trust in its turn was a partner of the partnership firm in the name and style of " Beena Enterprises ", Coimbatore, with 30 per cent. share, constituted under a deed of partnership dated April 1, 1972. There are three partners and six minors. The minors are admitted to the benefits of the partnership only as under the law. There is no dispute that they are all relatives of the authors of the partnership-firm and the main source of income of the partnership firm of the trust is nothing but the sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. It was contended before the Tribunal that this is a matter of evidence and it must be with reference to the extent of shares held by the other partners in the firms, Beena Enterprises, Coimbatore, Chandrika Agencies, Bangalore, and Chandrika Enterprises, Irinjalakuda. It was emphasised that the assessee had 30 per cent., 20 per cent. and 35 per cent. shares, respectively, with reference to these partnership firms. Reliance was also placed on the provisions of section 13, Explanation 3(ii) of the Income-tax Act, 1961, to raise a contention that this Explanation, which is available under the statutory provisions of the Income-tax Act, 1961, could not be read in wealth-tax proceedings. In support of this contention, reliance was placed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar to state that a similar and identical question with regard to the provisions of sections 13(1)(c)(ii) and 13(2)(h) read with section 13(3) of the Income-tax Act, 1961, was already referred to this court. It must be stated that with regard to the same trust-Sree Narayana Chandrika Trust at Irinjalakuda--in Income-tax Reference No. 42 of 1991 by the judgment dated September 23, 1996 (Sree Narayana Chandrika Trust v. CIT (No. 2) [1997] 224 ITR 464), we had an occasion to consider the identical provision with regard to the assessment year 1973-74 relating to exemption under sections 11 and 12 of the Income-tax Act, 1961, read with the statutory provisions of section 13(1)(c)(ii) and 13(2)(h) read with section 13(3) of the Income-tax Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In addition, this court also had an occasion to consider the question of benefit of exemption, though under the provisions of the Income-tax Act, 1961. The position does not change when the question is of benefit of exemption for the purposes of the Wealth-tax Act, 1957. For all the above reasons, we answer the questions in the following manner, after reproducing them hereafter : A. Was the Appellate Tribunal justified in holding that the assessee trust is not entitled to the benefit of exemption under section 5(1)(i) of the Wealth-tax Act ? in the affirmative, in favour of the Revenue and against the assessee. B. Was the Appellate Tribunal justified in rejecting the contention of the assessee-trust that there is no violation of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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