LAKSHMI NIWAS BIRLA Vs. WEALTH TAX OFFICER

JUDGEMENT

(1.) On December 1, 1976, an order passed by the Appellate Assistant Commissioner of Income-tax for the assessment years 1972-73 and 1973-74 holding that the Health Resort Trust, of which the petitioners are trustees, was a public charitable trust exempt from income-tax under the provisions of Section 11 of the Income-tax Act, 1961 (hereinafter referred to as "the said Act"), setting aside the order passed by the Income-tax Officer for the said trust was formed for the benefit of the trustees and employees of the Birla group of companies.

(2.) In spite of the said appellate order which was binding on the Wealth-tax Officer who was also acting as the Income-tax Officer, he issued a notice under Section 17 of the Wealth-tax Act, 1957, on the ground that wealth-tax was leviable on the trust property since exemption under Section 5(1)(i) meant for public charitable trusts was not available because of the user of the trust property by the trustees thereby attracting the provisions of Section 21A(i). Such notice was issued on March 2~5, 1978.

(3.) On May 15, 1980, an order was passed by the Income-tax Appellate Tribunal upholding the order dated December 1, 1976, of the Appellate Assistant Commissioner of Income-tax for the assessment years 1972-73 and 1973-74 allowing exemption as public charitable trust. No reference application was filed against the said order of the Tribunal which became final.