CHINTAMANI GHOSH TRUST Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE present reference made by the Appellate Tribunal under Section 27(1) of the Wealth-tax Act, hereafter referred to as the Act, arises out of the assessment of net wealth of the applicant, Chintamani Ghosh Trust, Allahabad, hereinafter referred to as " the trust". THE statement of the case relates to the assessment years 1957-58, 1958-59, and 1959-60. THE corresponding valuation dates are 31st March, 1957, 31st March, 1958, and 31st March, 1959, respectively. Four questions of law, to be set ovt presently, have been raised by the Tribunal for the opinion of this court.

(2.) THE trust was created by the late Sri Chintamani Ghosh by and under written and registered deed dated July 24, 1924, for making provision for decendants and other relatives of the settlor, for charity, and for due performance of the worship of the family deity, Sri Sri Sridharjee. THE property settled on trust consisted of certain shares valued at Rs. 2,19, 765 and also a sum of Rs. 2,80,235, which had been deposited by the settlor with the Indian Press Ltd., Allahabad. THE total value of the amount settled on trust was, thus, Rs. 5,00,000 only, at the inception. THE property so settled has been referred to in the deed as endowed property. Subsequently, the trustees acquired extensive house properties in Allahabad and also movable properties with the trust money which constituted the basis of the assessment of the net wealth of the trust, during the three relevant: assessment years.

(3.) THE Wealth-tax Officer assessed the trust in the status of an individual and computed the value of the net wealth at Rs. 17,09,030, Rs. 14,23,633 and Rs. 14,29,999 for the assessment years 1957-58, 1958-59 and 1959-60, respectively, as against about Rs. 6'5 lakhs returned by the trust. Evidently the Wealth-tax Officer acted on the basis that the trust being the legal owner of the assets was assessable to wealth-tax on the net value thereof. He, therefore, taxed the entire value of the net wealth in the hands of the trust.