PRAMODCHAND SONI TRUST Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) BY this reference under Section 27(1) of the Wealth-tax Act, 1957 (for short "the Act"), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law for the opinion of this court :

(2.) THE assessee is a private trust. THE assessee was assessed to wealth-tax for the assessment years 1971-72 to 1975-76. THE WTO while completing the assessment held that it was a case of a family trust wherein the shares of the beneficiaries were indeterminate. Before the WTO it was contended on behalf of the assessee that on April 8, 1975, a rectification deed was executed whereby the shares of the beneficiaries were declared to be equal and as such the provisions of Section 21(4) of the Act were not attracted. THE WTO held that the rectification deed was not valid and the assessments have to be made on the basis of the original trust deed. On appeal by the assessee, the AAC upheld the orders of the WTO. On further appeal, the Tribunal also maintained the order of the WTO. At the instance of the assessee, the Tribunal has referred the aforesaid question of law for the opinion of this court.

(3.) WE have already held above that the deed of rectification cannot have any effect on the assessment of the assessee for the assessment years in question.