9911796707
TMI Blog1987 (1) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... he W.T.O. the assessee claimed that deduction u/s. 5(1A) should be allowed in view of the decision of the Tribunal in the case of Shalini Trust No. 1. As the decision has not been accepted by the Department, the W.T.O. did not allow the deduction as allowed by the Tribunal in the case of Shalini Trust No. 1. Being aggrieved, the assessee carried the matter before the A.A.C. The AAC had followed the said decision of the Tribunal in the case of Shalini Trust No. 1 [WT Appeal No. 1094 (Bom.) of 1983] and allowed the claim of the assessee. 3. Being aggrieved, the Revenue came in appeal before us. The learned Departmental Representative Sri Raju submitted that the Trust held the property on behalf of the beneficiaries, i.e. life interest, rema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e trust is treated as individual and the residue should be assessed in its hands as net wealth of the individual who is a citizen of India. Though the residue can be treated as net wealth of the trust, but when the trust is treated as individual and citizen of India, the trust is equally entitled for deduction u/s. 5(1)/5(1A) as available to other individuals. He also drew our attention at the definition of net wealth given in section 2(m) of the Act. 4. We have heard the rival submissions and considered the material on record. The facts are not disputed before us that the beneficiaries have their specific shares in the corpus of the trust. The provisions of sub-sec. (1A) of section 21 reads as under : " (1A) Where the value or aggregat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he fiction by treating the trust as individuals, the trust is eligible for exemption u/s. 5(1)/5(1A) at the time of assessment of wealth assessable u/s. 21(1A) of the Act. Their Lordships of the Bombay High Court have also considered the similar issue in the case of CWT v. Vasudeva V. Dempo [1981] 131 ITR 291, though there are slightly different facts in the case before their Lordships of the Bombay High Court, but the principal issue is regarding the exemption u/s. 5, to whom and at what stage it should, be allowed was considered by their Lordships. Their Lordships observed as under : " Section 5 of the W.T. Act, 1957, which provides for exemption in respect of certain assets, in its opening words under sub-sec. (1), indicates that exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y out of the residue which is taxable in the assessment made on the trust u/s. 21(1A) of the Act. 5. Sri Raju emphasised on the words 'net wealth' referred in sec. 21(1A) of the Act. According to him, nothing can be excluded or deducted from the net wealth which is taxable u/s. 21(1A) of the Act. Net wealth is defined in section 2(m) of the W.T. Act, which reads as under :-- " 2(m) Net wealth means the amount by which the aggregate value computed in accordance with the provisions of the Act of all the assets wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
