2004 (1) TMI 43

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....late Tribunal is right in directing the Wealth-tax Officer to allow deduction of Rs.7,43,270 being the aggregate market value of the interest of the beneficiaries as also deduction of Rs. 1,50,000 from the bank balance as exempt under section 5(1)(xxiii) of the Wealth-tax Act, 1957 ?" The following question proposed by the Revenue was not referred by the Tribunal and the Revenue has not filed any reference application for the said question: "Whether in law and on facts, the Appellate Tribunal is right in holding that the assessee-trust has to be treated as a specific trust and not a discretionary trust as held by the Wealth-tax Officer?" The respondent-assessee is a trust created by the late Girdharlal Amratlal by a deed of settlement....

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....the conclusion that trustees are also entitled to claim the exemption under the above clause because trustees are required to be treated as individuals. We have heard Mrs. Mona Bhatt, learned standing counsel for the Revenue. Though served, none appears for the respondent-assessee. Mrs. Bhatt, learned standing counsel for the Revenue, has submitted that in view of the clear language of the clause, only individuals and Hindu undivided families are entitled to claim the exemption in a trust. The trust being neither an individual nor a Hindu undivided family cannot claim the exemption under the above clause. Mrs. Bhatt has, however, been fair in pointing out that the Rajasthan High Court in CWT v. Bhangur Charitable Trust [1987] 164 I....