9911796707
TMI Blog1983 (5) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... 50% determined share as a beneficiary. The WTO observed that exemption in respect of the house property belonging to an assessee only was allowable and that in the instant case the property did not belong to the assessee in the strict sense of the term and that the conditions enumerated in the Trust Deed provided that the property can only divest on assessee's attaining majority and that there should be majority decisions of the Trustee before divesting. The WTO remarked that the conditions are not alternative but cumulative. According to the WTO, the assessee did not become the legal owner of the property whether on facts or in law and all he had, was an equitable right of ownership. The WTO noted that he could not agree with the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ging section as well as the exemption section are very clear and the WTO's finding was quite patent to the issue and therefore, the exemption was rightly disallowed by the WTO and on the facts of the case, the order of the AAC requires to be reversed. It is argued that the assessee for the years under appeal was not the legal owner as such so as to entitle in to the exemption as claimed. It is urged that the AAC has committed an error in holding that the assessee in a beneficiary capacity was the legal owner of the property. It is submitted that the order of the WTO may be restored. It is also submitted that the AAC has committed an error in allowing exemption u/s. 5(1)(iv) under the circumstances as stated above. It is urged that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. This is what exactly happened in the present case. The conclusion of the WTO to take a different view when the assessee claimed exemption u/s. 5(1)(iv) of that very same property, cannot be sustained. In this connection, we may refer to the decision of the Hon'ble Supreme Court in the case of CWT vs. Biswanath Chatterjee Ors. 1976 CTR (SC) 266 : (1976) 103 ITR 536 (SC), in which the wording "belonging to the assessee" under the WT Act were discussed and dealt with. It was noted amongst other things that u/s. 3 r/w s. 2(m) of the WT Act, liability to wealth tax arises out of ownership of the asset and not otherwise. In other words, the property must be "belonging" to the assessee. The fact that the property belonging to the assessee was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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