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TMI Blog1987 (2) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... nd reversionary beneficiaries. The WTO, however, assessed these trusts as discretionary trusts and levied the tax at maximum rate on the entire net wealth without allowing exemption under section 5(1) (xxiii). The AAC held that these trusts are specific trusts and directed the WTO to assessee them on the net wealth after reducing therefrom the values of interest of life beneficiaries and reversionary beneficiaries. He, however, did not allow the deduction under section 5(1) (xxiii) in some cases and in other cases he did not consider this ground though raised by the assessee. 3. Aggrieved by the Orders of the AAC, the assessees have come up in appeal before us and claimed the exemption as allowable by virtue of section 5(1) (xxiii) read w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets chargeable to tax under this Act which are held by the trustees, the wealth-tax is levied upon and recoverable from the trustees in like manner and to the same extent as it would be leviable upon and recoverable from the person on whose behalf or for whose benefit the assets are held. In other words, the ascertainment of the wealth and the calculation of the tax thereon in the hands of the trustees would be done as if the proceedings took place against the beneficiaries themselves. Under this provision as interpreted by the Supreme Court in the case of CWT v. Trustees of H. E. H. Nizam's Family (Remainder Wealth) Trust [1977] 108 ITR 555 only the value of the interest of the life beneficiaries and the reversionary beneficiaries whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat what section 21(1A) deems as not wealth is the value of such assets to the extent it exceeds the value or aggregate value of the interest of the beneficiaries. The words 'such assets' have to be understood denoting only those assets as are covered by section 21(1) which means assets chargeable to tax. The assets which are chargeable to tax have to be besides those assets which are enumerated in section 5(1)/5(1A) and which are expressly stated to be not includible in the net wealth of the assessee. 7. Even if we assume that the excess is deemed to be the net wealth and there is no scope for giving any further exemption under section 5(1) as contended to by the learned departmental representative, we cannot ignore in that case the foll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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