9911796707
TMI Blog1976 (7) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1961-62) and under section 64 of the 1961 Act (assessment year 1962-63) ? 2. Whether, on the facts and in the circumstances of the case, in the wealth-tax assessment for 1960-61, the value of 1,500 shares of Changdeo Sugar Mills Ltd. is rightly includible in the applicant's net wealth under section 4(1)(a)(iii) of the Wealth-tax Act ? " The assessee is an individual having substantial income from salary, property and dividends. By a deed of trust dated March 30, 1960, he settled upon trust and transferred to the trustees mentioned in the said deed of trust, inter alia, 1,500 shares of Changdeo Sugar Mills Ltd. The assessee had a son by name Bharat Kanaiyalal Sheth who was aged about 2 years on the date of the deed of trust. The de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 1 is concerned Mr. Mehta appearing on behalf of the assessee has for the purposes of this court conceded that in view of the judgment of Vimadalal and S. K. Desai JJ. in Wealth-tax Reference No. 21 of 1966 (Shardaben Jayantilal Mulji v. Commissioner of Wealth-tax [1977] 106 ITR 667 (Bom) question No. 1 should be answered in the affirmative and in favour of the revenue. So far as question No. 2 is concerned, Mr. Mehta submitted that under the deed of trust the trust estate should be valued separately in respect of the interest of the minor child, Bharat, during the period of his minority and it should be valued separately in respect of the interest of Bharat after he attained majority. He submitted that if under the deed of trust inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. should be included in the wealth of the assessee for the wealth-tax assessment year 1960-61. Section 4(1)(a)(iii) is as under : " 4. (1) In computing the net wealth of an individual, there shall be included, as belonging to that individual-- (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 (directly or indirectly) otherwise than for adequate consideration for the immediate or deferred benefit of the individual, his or her spouse or minor child..." It is not disputed in the present case that in view of the transfer of the trust estate to the trustees the 1,500 shares of Changdeo Sugar Mills Ltd. which belonged t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the benefit of the minor child on the valuation date. Even when the corpus is not to be utilised for the benefit of a minor child the Gujarat High Court has taken the view that the case will be covered by the provisions of section 4(1)(a)(iii). This decision of the Gujarat High Court is to be found in the case of Chandulal Shivalal v. Commissioner of Wealth-tax [1965] 55 ITR 441 (Guj). It is held in this case that section 4(1)(a)(iii) of the Wealth-tax Act, 1957, would be attracted even if the minor child or wife was given only a right to enjoy the income of properties transferred under the settlement for their life. There is no reason for giving any narrow meaning to the expression " for the benefit of "occurring in the said provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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