COMMISSIONER OF WEALTH TAX Vs. M C SATYAVATHI

JUDGEMENT

(1.) THE Revenue has caused this reference to be made. It concerns the assessment years 1977-78 to 1980-81 and arises under the Wealth-tax Act, 1957, as also under the Income-tax Act, 1961. THE questions referred to us are :

(2.) SIMILAR questions arose concerning the same assessee and those questions were considered by this court in the case of CIT v. Smt. M.C. Sathiyavathi [1997] 225 ITR 109. It was held by this court that the contributions made by the assessee to the trust were in the nature of gifts with no power of revocation, and, therefore, the interest income attributable to the contributions made by the assessee to the revocable trust created by her husband for the benefit of his Would be son-in-law could not be assessed to tax in her hands in terms of Section 61 of the Income-tax Act, 1961.