Law:

Section:

Section 21(1) of the wealth-tax act, 1957-trust-assessment of-trust deed of assessee-trust provided that after meeting expenses specified therein, entire income was to be distributed equally among five sons of settlor-whether shares of beneficiaries were determinate and hence assessment had to be made separately in the hands of beneficiaries under section 21(1) and not in the hands of assessee-trust-held, on facts, yes Facts The deed of trust of the assessee-trust provided that after meeting the expenses specified in the deed, the entire trust income was to be distributed in equal shares amongst the five sons of the settlor. The WTO completed the assessment on the trust under section 21(4). On second appeal, the Tribunal took the view that there were five beneficiaries under the trust and their shares were also determinate and as such assessments had to be made under section 21(1). On reference : Held It is well settled that where the beneficiaries under a trust are determinate and can be identified and their shares are known, assessment under the Wealth-tax Act would be made under section 21(1). In the instant case, it was clear from the provisions of the trust deed that there were five beneficiaries and their shares were also determinate. Hence, the only provision under which the assessments should be made was section 21(1). Case review CWT v. Trustees of H.E.H. Nizam's Family (Remainder Wealth) Trust [1977] 108 ITR 555 (SC) followed. Case referred to CWT v. Trustees of H.E.H. Nizam's Family (Remainder Wealth) Trust [1977] 108 ITR 555 (SC). WT REFERENCE NO. 72 OF 1977. R.J. Joshi and A. Shelat for the Applicant V.R. Manohar and L.S. Devani for the Respondent.. Judgment Chandurkar, J.- The assessee in this reference which is made at the instance of the revenue is Hasnate Burhaniyah Fidaiyah Wakf. The assessment years in question in this reference are 1966-67 to 1974-75. There are other references in respect of the same assessees, that is, reference No. 68 of 1976 for the assessment years 1958-59 to 1961-62 ; WT Reference No. 5 of 1974 for the assessment years 1962-63 and 1963-64; WT Reference No. 9 of 1981 for the assessment year 1957-58 and WT Reference No.…

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