COMMISSIONER OF WEALTH-TAX Vs. RAKESH MOHAN

JUDGEMENT

(1.) THE Income -tax Appellate Tribunal, Allahabad, has referred the following two questions of law under Section 27(1) of the Wealth -tax Act, 1957, hereinafter referred to as 'the Act' for opinion to this Court: 1. Whether in law and on facts of the case the Tribunal was justified in confirming the Commissioner of Wealth -tax (Appeals)'s decision deleting the addition of Rs. 6,87,077 made on account of value of shares transferred to the trust?

(2.) WHETHER in law and on facts of the case, the Tribunal was justified in holding that there was a valid trust in existence even if the basic conditions of Section 6 of the Indian Trusts Act were not satisfied/fulfilled? 2. The reference relates to the assessment year 1980 -81.

(3.) THE respondent/assessee claimed to have created a trust known as First Son of Pankaj Mohan on May 22, 1993. He had transferred certain shares valued at Rs. 6,87,077 to the trust. The Wealth -tax Officer included the value of the aforesaid shares transferred to the trust, while making the assessment under the Act, on the ground that the Department has found the trust to be invalid as the sole beneficiary was not in existence. The respondent took the matter in appeal before the Commissioner of Wealth -tax (Appeals), who upheld the claim of the respondent/assessee and deleted addition, which order has been upheld by the Tribunal.