1979 (5) TMI 96

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.... which he confirmed the assessments made by the 2nd WTO Companies Circle, Madurai under s. 16(3) of the WT Act on the assessees which are private trusts for asst. yrs. 1976-77 and 1977-78, the relevant valuation dates being 31st March, 1976 and 31st March, 1977 respectively. The WTO computed taxable wealth of the assessee in WTA Nos. 216 & 217 (Mds)/78-79 as Rs. 74,200 and Rs. 90,000 and the tax p....

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.... wealth. Aggrieved by such assessments the assessees preferred appeals to the AAC contending that since the taxable wealth was below Rs. 1 lac no tax could be levied. The AAC did not accept the contention. He held that under s. 21(4) of the WT Act tax was leviable either as per the rates mentioned in the Schedule to the Act or 1.5 per cent whichever was higher. He therefore confirmed the assessmen....

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....is no scope for the application of the proviso in Para-A of Part-I of the Schedule of WT Act in such a case. He pointed out that the provisions of s. 3 are subject to the other provisions in the WT Act and consequently there is no question of provisions of s. 3 over-riding the provisions of s. 21(4). 4. It is seen that this question came up for consideration in the case of these very assessees ....

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....e shares it had taken the provision made for proposed dividends also an item of asset of the company. The WTO rejected the above contention for the reasons mentioned in an annexure to his order. The AAC also rejected the above contention. In the Expln. 2 or r. 1D are enumerated what amounts shown as assets in the balance-sheet shall not be treated as assets and what amounts shown as liabilities sh....