Sir Shankar Lal Foundation vs Commissioner of Wealth Tax

Yogeshwar Dayal, J.—This order will dispose of two applications u/s 27(3) of the Wealth-tax Act, 1957, relating to the assessment years 1973-74 and 1974-75, respectively. The assessed has sought the statement of case to be called in relation to the following two questions :

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in coming to a conclusion that the assessed-society registered under the Societies Registration Act and which is a public charitable foundation falling within the ambit of section 21A of the Wealth-tax Act, 1957, read with section 3 of the said Act was liable to wealth-tax and that wealth-tax is livable on the assesses-foundation ?

Whether the foundation which is a society registered under the Societies Registration Act can be treated to have authors/founders with reference to its subscribers/trustees and whether the term ''substantial contribution'' should be seen with reference to the total contribution received by the foundation and not as some absolute figure adopted by the Department within the meaning of section 13(3) of the Income Tax Act, 1961, and whether the provisions of section 13(2) have any application to a society ?"

2.After hearing both parties, we are of the view that the two questions as suggested do arise out of the order of the Tribunal while deciding the appeal as well as its cross-objections. A consolidated statement of the case may be made out for both the assessment years in question on the above two questions and the above two questions may be referred to this court. The costs will abide the result of the reference.