Law:

Section:

Section 45 (As it stood prior to its amendment in 1972) of the Wealth-tax Act, 1957 – Act not to apply in certain cases – Assessment year 1957-58 – Assessee, a banking company, was, appointed as sole trustee to administer trust by an order of High Court – Whether exemption under section 45(a) as it stood at relevant time could be available to banking company in so far as property belonging to such banking company was concerned and not any property held by such banking company in representative capacity as trustee – Held, yes – Whether, therefore, exemption contemplated by section 45 could not be availed by assessee – Held, yes Section 7 of the Wealth-tax Act, 1957 – Valuation of assets - Others – Whether reversionary interest should have been valued on actuarial basis – Held, yes Section 2(m) of the Wealth-tax Act, 1957 – Net wealth – Assessment year 1957-58 – Whether assets held by a trustee in trust for others cannot be said to be assets belonging to trustee so as to be includible in net wealth – Held, yes FACTS One ‘F' had created a trust by his will. He died in 1936 leaving behind him vast properties and three children. The testator had directed his trustees that they would stand possessed of the capital and income of the trust found in trust to divide the same into three equal shares and to appropriate one of such shares to each one of these three children then living, but each of these children did not get the share absolutely but each one of them had a life interest in the income of the share allotted to each. On the relevant valuation date only two children of the testator, were living. None of the revesioners or remainderman was in existence on the said valuation date. They also did not have any children nor had they exercised their power of appointment. They were also non-residents in the taxable territories. The assessee bank was appointed as sale trustee to administer the trust by an order of the High Court. The WTO first determined the value of life interest of each of two beneficiaries, and subjected such life interest to wealth-tax in the hands of the beneficiaries. So far as reversionary interest or remainder interest was concerned, he made a…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492