CWT Vs. CHIKYMAGALUR CLUB

JUDGEMENT

(1.) SINCE the parties in these reference proceedings are common, and since the issues involved are inter -related, both these cases are heard together and disposed of by this common order.

(2.) FACTS in Income Tax Referred Case No. 120/1998 (Old TRC Nos. 120 123/1998) are as under -. The assessee is a club registered under the provisions of Karnataka Societies Registration Act, 1960. For the assessment years 1980 -81, 1981 -82, 1982 -83 and 1983 -84, the assesses -club had filed the return of wealth in the status of AOP declaring net wealth of Rs. 'nil'. Rejecting the claim made in the returns filed, the Wealth Tax Officer had assessed the wealth of the assessee in the status of individual and charged wealth -tax, under the provisions of the Wealth Tax Act, 1957 ('Act' hereinafter referred to as).

(3.) ON further appeals by the assesses -club against the aforesaid order passed by the first appellate authority, the Tribunal has allowed the appeals, on the ground that the assessee is an entity not susceptible to be assessed for its relying on the decision of the Karnataka High Court in the case of CWT v. Bowning Institute Wealth (1992) 194 1TR 287.