Determinate beneficiary shares under a wakf trust require assessment under section 21(1), not section 21(4).

Where the beneficiaries of a wakf trust are known and their shares are fixed and determinate, assessment of the trustee is to be made under section 21(1) of the Wealth-tax Act, 1957, in the same status as the beneficiaries, with separate assessments corresponding to each beneficiary. On the deed's terms, the remaining income was to be divided equally among five sons after specified expenses, so the trust fell within section 21(1) and not section 21(4). The Revenue's contrary contention failed, and the assessments were upheld under section 21(1).

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Issues: Whether the assessments in respect of the wakf trust were justified under section 21(1) of the Wealth-tax Act, 1957, and not under section 21(4) of that Act, where the beneficiaries were known and their shares were determinate.

Analysis: The wakf deed provided that after expiry of the stated period and after meeting specified expenses, the entire remaining income was to be distributed in equal shares among five sons of the wakif. On those terms, the beneficiaries were identifiable and their shares were fixed and determinate. Where the beneficiaries of a trust are determinate and known, the proper provision is section 21(1), and assessment on the trustee has to be made in the same status as that of the beneficiaries, with as many assessments as there are beneficiaries. The facts fitted that principle and did not attract section 21(4).

Conclusion: The assessments were correctly made under section 21(1) of the Wealth-tax Act, 1957, and the Revenue's contention based on section 21(4) failed.

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