| Case ID |
f6b3b9ee-8790-4e79-ac72-0e2615624420 |
| Body |
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| Case Number |
CIVIL APPEAL Nos. 1478 TO 1481 OF 1967 |
| Decision Date |
Jul 29, 1971 |
| Hearing Date |
|
| Decision |
The Supreme Court ruled that the trustee under the trust deed was assessable to wealth-tax under section 21 of the Wealth-tax Act as it stood at the relevant time. The Court emphasized that the language of section 21(1) explicitly includes trustees, and that the intention of the legislature was to treat the trustee as holding the trust property on behalf of the beneficiaries. The case revolved around whether the shares of the beneficiaries were indeterminate or determinate, leading to a ruling that, as the settlor and his wife were alive and had rights to maintenance from the trust income, the shares were indeed indeterminate. Thus, the trustee was liable for wealth-tax, reversing the High Court's earlier decision. |
| Summary |
The case of Commissioner of Wealth Tax v. Kripashankar Dayashanker Worah revolves around the interpretation of section 21 of the Wealth-tax Act, 1957. The Supreme Court of India addressed whether a trustee is liable for wealth-tax based on the provisions of the Act. The case involved a trust deed where the respondent, Worah, had transferred properties and shares to himself as a trustee for the benefit of his family. The primary legal question was whether the trustee could be assessed for wealth-tax, considering the nature of the beneficiaries' shares. The Supreme Court ruled in favor of the revenue, stating that the indeterminate nature of the beneficiaries' shares necessitated the trustee's liability for tax under section 21. This decision is significant for understanding the tax obligations of trustees and the interpretation of trust law within the context of wealth taxation. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
K.S. Hegde,
A.N. Grover
|
| Lawyers |
Jagadish Swarup,
A.N. Kirpal,
B.D. Sharma,
R.N. Sachthey,
M.C. Setalvad,
S.K. Mitra,
A.K. Nag
|
| Petitioners |
Commissioner of Wealth Tax
|
| Respondents |
Kripashankar Dayashanker Worah
|
| Citations |
1971 SLD 407,
(1971) 81 ITR 763
|
| Other Citations |
Kirpashankar D. Worah v. CWT [1967] 65 ITR 520,
Sushashini Karuri v. Wealth-tax Officer, Calcutta [1962] 46 ITR 953 (Cal.),
Trustees of Gordhandas Govindram Family Charity Trust v. CWT [1968] 70 ITR 600 (Bom.),
Chintamani Ghosh Trust v. CWT [1971] 80 ITR 331 (All.),
Commissioner of Income-tax v. Managing Trustees, Nagore Durgha [1965] 57 ITR 321,
Commissioner of Income-tax v. Manilal Dhanji [1962] 44 ITR 876,
Commissioner of Income-tax v. Kokila Devi [1970] 77 ITR 350,
Commissioner of Income-tax v. Puthiya Ponmanichintakam Wakf [1962] 44 ITR 172,
G.T. Rajamanner v. Commissioner of Income-tax [1964] 51 ITR 339 (Mad.)
|
| Laws Involved |
Wealth-tax Act, 1957
|
| Sections |
21
|