2006 (7) TMI 171

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....e. The Tribunal has referred the following question to us for our answer: "Whether, the Appellate Tribunal is right in law and on facts in directing the Assessing Officer to exclude the sum of Rs. 4,81,957 being assets of Mahendra Dhanjibhai Parmar Family Trust, wherein the assessee was the beneficiary from the net wealth of the assessee?" Mrs. Bhatt, learned counsel for the applicant submit....

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....tter, she relied upon the following observation: "When a third person becomes entitled to receive the amount in question under an obligation of the assessee even before the assessee could lay a claim to receive it as his income, there would be a diversion of income by overriding title; but when after receipt of the income by the assessee, the same is passed on to a third person in discharge of ....

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....the income of the assessee goes to the trust, then the wealth would be created in favour of the trust and as the assessee would have no power of disposition, transfer/alienation in any manner, the property cannot be included in the wealth of the assessee. Though Mrs. Bhatt resisted the suggestion of the court for some time, however she herself brought to the notice of the court yet another judgmen....