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TMI Blog1990 (3) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... s remaindermen. The trust had more than twenty buildings and value of such buildings had been determined by the Official Valuer between Rs. 19 lakhs to 20 lakhs for A. Ys. 1975-76 to 1978-79. At least five of the buildings belonging to the said trust had value of more than Rs. 1 lakh each. 2. At the assessment proceedings, the assessee respondents had claimed, inter alia, exemption u/s 5(1)(iv) of the Act in respect of their interest in the immovable properties of the Trust. The WTO observed that while allowing exemption u/s. 5(1)(iv) and u/s. 5(1A) of the Act certain assumptions shall have to be made due to the complexity of the nature of wealth which was being assessed in the hands of the assessee respondents. In that behalf, he further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ands of the Trust or the beneficiaries, contended that they were entitled to deduction of Rs. 1 lakh each u/s. 5(1)(iv) of the Act. The learned AAC accepted their contention for the following reasons : " On a careful study of the facts of the case and the submissions made on behalf of the appellant, it is seen that section 5(1)(iv) provides for deduction on Rs. 1 lakh for one house property belonging to the assessee. In the instant case properties are held by the Trust and appellant as his share which is in form of remainderman interest. It is, therefore, obvious that the assessments are required to be made on the appellant as per the provisions of section 21(1) of the Act. There would be as many assessments on the trustees as there are b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property of the trust and that such exemption cannot be given to them to the extent of Rs. 1 lakh each. In this behalf reliance was placed on the Calcutta High Court decision in the case of CWT v. Official Trustee of West Bengal for Trust Murshidabad Estate [1982] 136 ITR 162. The learned departmental representative further submitted that the analogy drawn from sec. 48(2) of the I.T. Act, 1961 cannot be pressed into service for the benefit of the assessee respondents in the instant cases. On the other hand, the learned counsel for the assessee respondents supported the order under appeal. 5. It was also stated at bar that the assessee respondents in the instant cases have not claimed exemption u/s. 5(1)(iv) in respect of any other house ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 21(1) is exigible to tax accepted, deduction available under the provisions of section 5 shall have to be allowed in full because such benefit cannot be withheld, even partially, in computing value of his interest in the corpus of the trust. The beneficial provisions of sec. 5(1) shall have to be followed in the case of each beneficiary in a case where the trust has more than one beneficiary and also has property falling within the purview of section 5(1). In the instant case, it is an admitted position that the trust in question is a specific or determinate one having five beneficiaries with their known shares. The provisions of sec. 21(1) obviously apply to the instant cases. As assessments had been made on the beneficiary the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the benefit of exemption u/s. 5(1)(iv) to the extent of respondents' share in one house property only. If one goes by the analogy adopted by the WTO that no single property of the trust can be said to be exclusively belonging to a particular beneficiary, then on the same analogy it shall have to be accepted that the value of the interest of the beneficiary in all the house properties of the trust would qualify for exemption u/s. 5(1)(iv) in the case of beneficiary. 8. To sum up we are satisfied that the learned AAC has decided the issue in these cases rightly and in accordance with well settled proposition of law. We, therefore, find no force in these appeals and dismiss them as such. 9. Both the sets of appeals are hereby dismissed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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