TaxTMI 
TaxTMI 
1997 (10) TMI 29
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....the case, the Appellate Tribunal was right in law in holding that the trust income should not be included in the income-tax assessment of the assessee-minor for the assessment year 1977-78 ?" In so far as the reference under the Wealth-tax Act is concerned, the Tribunal has stated a case referred the following question of law under section 27(1) of the Wealth-tax Act : "Whether, on the facts and circumstances of the case, the Tribunal was right in deleting the wealth of Venkatesh Trust of Rs. 30,945 from the total wealth of the assessee for the assessment year 1977-78 ?" Since it is a combined reference and the facts are common, we propose to deal with both the cases in common. One R. V. Bhuvanesh, the settlor by an indenture ma....
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....sh Trust including the accrued income for the reason that the beneficiary was the owner of the trust funds. The assessee filed separate appeals before the Appellate Assistant Commissioner, both under the Income-tax Act and the Wealth-tax Act. The Appellate Assistant Commissioner held that the beneficiary had neither beneficial interest in the trust income, nor control over the income including during the accounting year as he was a minor and as the corpus and the income have to be accumulated and were payable only when the beneficiary attains the age of 18. The Appellate Assistant Commissioner, therefore, held that the income is not includible in the hands of the assessee and so also, he deleted the inclusion of such assets in the appeal....
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....r notice the decision in unreported cases of this court in T. C. No. 850 of 1983 CIT v Venkatesh (Minor) since reported in [1999] 237 ITR 122, dated March 11, 1996, and T. C. No. 1132 of 1985 dated February 21, 1997, wherein this court held that the income from the trust was deferred till the minor attains majority. This court therefore held that the income of the trust during the assessment year when the beneficiary was a minor cannot be taxed in the hands of the assessee since the income did not accrue to the beneficiary till he attains majority. The above view was arrived at by this court following the decision of this court in CIT v. Sitalakshmi (Minor) [1996] 217 ITR 595. In view of the above two decisions of this court rendered in the....
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....re unable to accept the contention of learned counsel for the Revenue. The only issue before the Wealth-tax Officer at the time of finalising the assessment was whether the interest of the beneficiary in the trust was an absolute interest or a contingent interest. The Wealth-tax Officer held that it was an absolute interest and in that view of the matter, he included the value of the interest in the net wealth of the assessee. In the appeal preferred by the assessee, the Appellate Assistant Commissioner held that the income did not accrue to the beneficiary during the accounting year and the income could not be included in the hands of the assessee, C. R. Rajendran, the father and guardian of the minor beneficiary. For the same reason state....
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.... involves investigation into new facts, we are of the opinion that it is not permissible for the Revenue to raise the question of inclusion of the value of interest before this court in the reference in the wealth-tax assessment of the assessee. The decision of the Supreme Court in Scindia Steam Navigation Co. Ltd.'s case [1961] 42 ITR 589, makes the position clear that when a question of law is neither raised before the Tribunal nor considered by it, it is not a question arising out of its order notwithstanding that it may arise on the findings given by it. Since the question of law regarding the inclusion of the contingent interest was neither raised before the Tribunal nor considered by the Tribunal, we are of the opinion that the que....