Law:

Section:

Section 3 of the Wealth-tax Act, 1957 - Charge of tax Where assessee had purchased some lottery tickets which it settled on trust for benefit of 15 beneficiaries, prize money received on such ticket was assessable in trust's hands and not in assessee's hands [A.Y 1984-85 to 1986-87] The assessee purchased some lottery tickets and settled them on trust for the benefit of 15 beneficiaries and handed over the said lottery tickets to the trustees. One of these tickets won the first prize of Rs. 1 Crore. The trust was also an assessee and it had also field its return. The assessee contended that the prize money had to be assessed in the hands of the respective beneficiaries as the beneficiaries and their were determinate and known. The Assessing Officer did not agree with the plea of the assessee. The Assessing Officer also held that the income actually arose in the hands of the assessee and that there would not be any assessment in the hands of the trust. The Assessing Officer held that the trust was not a genuine one and, hence, it was not a valid trust. And that the prize money had to be assessed only in the hands of the assessee and not in the hands of the trust. The Commissioner (Appeals) allowed the appeals and set aside the orders of the Assessing Officer. However protective assessment was made in the hands of the trust also. The Tribunal dismissed the revenue's appeals by following the earlier order in the Trust' case as well as the assessee's own case. Held that in the instant case, the Tribunal merely followed decision in C.R.K. Swamy Trust's case as in well as the assessee's own case in ITA No. 1969 (Mds.) 1989 and ITA Nos. 4131 to 4133 (Mds) 1989, respectively. The trust's case had attained finality on dismissal of the revenue's petition by the High Court. In respect of the assessee's own case relating to the earlier assessment years 1984-85, 1985-86 and 1986-87, the revenue was unable to furnish the details as to whether they had filed any appeal against the said order or not. No fresh evidence or any other material was produced to substantiate the claim of the revenue. The Tribunal correctly followed its own orders and decided the matter in favour of…

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