Trust property and deity status under wealth tax: trustees are assessable, and deities are treated as persons.

Trust property settled for the benefit of deities is assessable in the hands of the trustees under the Wealth-tax Act, 1957, because section 21 governs taxation of trust assets and the tribunal's contrary view was rejected as inconsistent with the statutory scheme and Supreme Court authority. The text also states that deities are treated as persons and individuals for the relevant tax purpose, so section 3 applies to them and the earlier objection that a deity could not fall within that provision was not accepted. On that basis, the assessee's contention that the Wealth-tax Act did not apply to the deities was rejected.

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Issues: (i) Whether the wealth-tax assessment made on the trustees in respect of the properties settled for the benefit of the two deities was sustainable under section 21 of the Wealth-tax Act, 1957; (ii) whether deities are individuals so as to fall within section 3 of the Wealth-tax Act, 1957.

Issue (i): Whether the wealth-tax assessment made on the trustees in respect of the properties settled for the benefit of the two deities was sustainable under section 21 of the Wealth-tax Act, 1957.

Analysis: The assessment of trust property in the hands of trustees is governed by section 21 of the Wealth-tax Act, 1957. The question was covered by the Supreme Court decision relied upon in the judgment, and the Tribunal's contrary view could not stand.

Conclusion: The assessment was sustainable in law under section 21 and the answer was in the affirmative.

Issue (ii): Whether deities are individuals so as to fall within section 3 of the Wealth-tax Act, 1957.

Analysis: The judgment held that the earlier controversy whether an idol is a person and an individual had been resolved by the statutory definition of "person" in section 2(31) of the Income-tax Act, 1961, together with the Supreme Court's pronouncement that idols are persons and individuals. On that basis, the Tribunal's view that section 3 did not apply to a deity was rejected.

Conclusion: Deities are persons and individuals for the relevant tax law purpose, and section 3 applies; the answer was in the affirmative against the assessee.

Final Conclusion: Both referred questions were answered in favour of the Revenue, and the assessee's contention that the Wealth-tax Act did not apply to the deities was rejected.

Ratio Decidendi: A deity can be treated as a person and individual for tax purposes, and trust properties settled for deities are assessable under the Wealth-tax Act through the trustees in accordance with the statutory scheme.

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