CWT Vs. MAHENDRABHAI D. PARMAR

JUDGEMENT

(1.) MRS . Bhatt, learned counsel for the revenue. The Tribunal has referred the following question to us for our answer : Whether, the Appellate Tribunal is right in law and on facts in directing the assessing officer to exclude the sum of Rs. 4,81,957 being assets of Mahendra Dhanjibhai Parmar Family Trust, wherein the assessee was the beneficiary from the net wealth of the assessee ?

(2.) MRS . Bhatt, learned counsel for the applicant submits that the assessee is an individual and is partner to the extent of 8 per cent, profits in M/s. Kina - rivala R. J. K. Industries, a partnership firm. He created a family trust known as 'Mahendra Dhanjibhai Parmar Family Trust'. She also submitted that out of the 8 per cent, share, 4 per cent, is to be appropriated in favour of the said trust so that the money is used in the interest of the beneficiaries.

(3.) SHE submits that if the amount transferred in favour of the trust would continue to be income of the assessee, then creation of the wealth by the said transferred amount would be wealth of the assessee.