COMMISSIONER OF WEALTH TAX Vs. K SITALAKSHMI MINOR

JUDGEMENT

(1.) AT the instance of the Commissioner of Wealth-tax, Madurai, the Income-tax Appellate Tribunal, Madras Bench "D", has stated a case and referred the following question of law for the assessment year 1979-80 under section 27(1) of the Wealth-tax Act, 1957, for our consideration :

(2.) THE assessee is an individual and she is the beneficiary of a trust known as "Baby Sitalakshmi Trust". As per the terms of the trust, the income was to be accumulated year after year and should be handed over to the beneficiary only on her attaining the age of 18. She became a major only in June, 1983. It is contended on behalf of the assessee that the annual accretion to the trust cannot be treated as the income of the assessee, and the amount standing to the credit of the trust, cannot be treated as part of the net wealth of the assessee. THE Wealth-tax Officer, however, held that only the enjoyment was postponed, but there was a vested interest in favour of the assessee. THErefore, he included the capital of Baby Sitalakshmi Trust in the net wealth of the assessee.