Law:

Section:

Section 21, read with section 27 of the Wealth-tax Act, 1957 - Trust/trustees - Assessment when assets are held by - Assessment year 1972-73 - Assessee-trust claimed that no assessment could be made in its case but WTO made assessment on 22-2-1979 - Before that date WTO had finalised assessment of three out of four beneficiaries and, therefore, it was contended that he was debarred from making assessment on trustees - It was also contended that since assessment was made under section 21(4), WTO had exercised option of making assessments directly on beneficiaries and, therefore, could not make assessment on trustees - In income-tax assessment, Tribunal found that trustees were not given authority to modify terms of trust - Therefore, Tribunal held that on relevant valuation date not only beneficiaries were known but also their shares were equally known - It was also held that as WTO had made assessment on beneficiaries even if assessment was to be made on trustees, such an assessment being one under section 21(1) could not mean any difference in tax liability - Whether Tribunal had given proper reason and, therefore, no question of law arose out of its order - Held, yes FACTS The assessee-trust was created by a deed dated 28-5-1959. It was not noticed by the Department that the shares of the beneficiaries were not specified in the trust deed. The assessee filed its return of wealth for the relevant assessment year but claimed that no assessment could be made in its case. The WTO however, made the assessment on 22-2-1979 - Wealth-tax assessments were also made on the beneficiaries of the trust. The contention of the assessee was that since the WTO finalised the assessments of three out of the four beneficiaries prior to 22-2-1979, he was debarred from making an assessment on the trustees. It was also contended that the WTO made the assessment on the basis of the provisions of section 21(4), as such the WTO had exercised the option of making the assessments directly on the beneficiaries and thus, he could not make the assessment on the trustees. In the Income-tax case, the contention of the assessee was that the trust had passed a resolution on 15-12-1969, whereby…

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