9911796707
TMI Blog1987 (4) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961, the assessee transferred certain other shares of the same company in favour of the trustees thereunder appointed for the benefit of his minor daughters, Aparna and Gayatri. In computing the net wealth of the assessee as on March 31, 1964, and March 31, 1965, relevant to the assessment years 1964-65 and 1965-66, the Wealth-tax Officer included the market value of the aforementioned shares in the net wealth of the assessee, invoking the provisions of section 4(1)(a)(iii) of the Wealth-tax Act, 1957. The Appellate Assistant Commissioner, on appeal, upheld the Income-tax Officer's order in so far as it concerned the dated March 26 , 1959. The Tribunal, in the cross-appeals filed by the assessee and the Revenue, upheld the Appellate Assist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, as belonging to him (a) the value of assets which on the valuation date are held... (iii) by a person or association of persons to whom such assets have been transferred by the individual otherwise than for adequate consideration for the benefit of the individual or his wife or minor child, or ......" (to the provisions of section 4, there was an amendment for the second of the two assessment years with which we are here concerned, but it had no bearing upon the present controversy). Section 21 provided that : " 21. In the case of assets chargeable to tax under this Act which are held by ... any trustee appointed under a trust declared by a duly executed instrument in writing ... the wealth-tax shall be levied upon and recoverab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments of this court, namely, CWT v. Kishanlal Bubna [1976] 103 ITR 56, Shardaben Jayantilal Muiji v. CWT [1977] 106 ITR 667 and K.M. Sheth v. CIT/CWT [1977] 107 ITR 45. While these judgments considered the provisions of section 4(1)(a)(iii), they did not consider the provisions of section 21. We must, therefore, consider the impact of sections 4 and 21, one upon the other, independently. The provisions of section 21 are to be applied when an assessment has to be made in the hands of the trustees. This is clear from the provisions of section 21 and it has been so held by the Supreme Court in the aforementioned case. Section 4, on the other hand, requires the inclusion of the assets of a trust as therein mentioned in the computation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the case, the Tribunal erred in law in holding that the assessee was not entitled to exemption under section 5(1)(viii) of the Wealth-tax Act, 1957, in respect of jewellery and ornaments of the value of Rs. 2,41,466 held by him for his personal and/or household use and of the value of Rs. 1,14,500 being jewellery and ornaments gifted by him to his wife for her personal use ? (ii) Whether section 5(1)(viii) of the Wealth-tax Act, 1957, as retrospectively amended, applied to the case of the assessee in so far as the claim for exemption of jewellery and ornaments of the aggregate value of Rs. 3,55,966 was concerned ? " We find that the first question arises not out of the order of the Tribunal but out of the order of the Appellate As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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