9911796707
TMI Blog1995 (3) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... Wealth-tax Act in the hands of the beneficiary who is having only life interest in various trusts ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in holding that the appeal lies under section 23(1) against an order passed under section 16(1) of the Wealth-tax Act, 1957 ? " These questions arise in the following circumstances : The assessee had a remainder interest in some of the trusts created by the Nizam of the erstwhile Hyderabad State. The assessments for the years 1978-79 and 1979-80 are in question. While submitting the returns, the assessee did not claim exemptions under section 5(1A) of the Wealth-tax Act. Accordingly, the Wealth-tax Officer made the assessments under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s granted by the appellate authority. The only point which is urged before us is that the Appellate Assistant Commissioner ought not to have entertained the appeal, under section 23 of the Act, against the order of assessment passed by the Wealth-tax Officer under section 16 of the Act when the assessee himself did not claim exemptions in the return and the first appellate authority ought not to have granted the exemption. It would be appropriate to notice here that the charging section in the Wealth-tax Act is section 3 which provides that there shall be charged for every assessment year commencing on and from the first day of April, 1957, a tax on the net wealth of the assessee on the corresponding valuation date. This charge is subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iib) of section 27 of the Income-tax Act shall be includible in the net wealth of the person who is deemed under the said clause to be the owner of that building or part thereof. Explanation 2. --- Where a debt falling under sub-clause (ii) is secured on, or has been incurred in relation to, any asset which is not to be included wholly or partly in the net wealth by virtue of the provisions of sub-section (1A) of section 5, the amount of such debt shall, for the purposes of the said sub-clause, be limited to the value of the said asset which is not includible in the net wealth under sub-section (1A) of section 5. " The expression " net wealth " has been defined to mean the amount by which the aggregate value, computed in accordance wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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