Commissioner of Income Tax vs Smt. Ushaben Trust

T.D. Sugla, J.

1.This is a reference at the instance of the Department. The proceedings relate to the assessment of the assessee-trust for the assessment year 1969-70. It was stated by the assessee before the Wealth-tax Officer that the beneficiaries had already been assessed in respect of their interest in the trust property. However, the Wealth-tax Officer completed the assessment on the trust properties treating it an individual. The assessment was set aside by the Appellate Assistant Commissioner. Following its order for the assessment year 1968-69, the Tribunal confirmed the order of the Appellate Assistant Commissioner.

At the instance of the Department, the Tribunal has referred to this court the following question of law for opinion :

"Whether, on the facts and in the circumstances of the case, it was open to the Wealth-tax Officer to assess the trust, notwithstanding the fact that assessments in the individual hands of the beneficiaries had already been made ?

Shri Jetley, learned counsel for the Department, has fairly stated that the issue involved herein is covered by this court''s judgment in the case of Trustees of Putlibai R.F. Mulla Trust Vs. Commissioner of Wealth Tax, . However, the issue, he stated, was pending before the Supreme Court. Shri Dastur, learned counsel for the respondent, stated that the Bombay High Court''s decision Trustees of Putlibai R.F. Mulla Trust Vs. Commissioner of Wealth Tax, has been approved by the Supreme court in the case of The Commissioner of Wealth Tax, Andhra Pradesh, Hyderabad Vs. Trustees of H.E.H. Nizam''s Family Hyderabad, . Accordingly, we answer the question in the negative and in favour of the assessee.

No order as to costs.