1978 (1) TMI 73

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....th-tax Act, 1957, the facts found and/or admitted are that the assessee executed a deed of trust on the 12th April, 1957, conveying properties to his brother, S. N. Chowdhury, to hold the same in trust for the benefit of the latter's wife and minor children. On the same day, S. N. Chowdhury also created a similar trust of assets and properties of similar value for the benefit of the assessee's wif....

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....trust deed could not be included in computing the net wealth in the hands of the assessee under sub-clause (iii) of section 4(1)(a) of the Act, under which sub-clause alone, if at all the said trust properties could have been so included. All the appeals were decided in favour of the assessee. From this order of the Tribunal the following questions have been referred to us under section 27(1) of t....

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....of the Wealth-tax Act were not applicable in respect of transfers of trust deeds ? 2. If the answer to question No. 1 be in the negative, then whether, on the facts and in the circumstances of the case, the Tribunal was right in directing that the value of the properties given in trust by the assessee to his brother should be excluded from the assessment of the assessee? " A similar question....

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....the income of the wife and minor child of the assessee's brother was not chargeable to tax in the hands of the assessee. We find that section 4(1)(a)(iii) of the Wealth-tax Act, 1957, is in pari materia with section 16(3)(b) of the Indian Income-tax Act, 1922. Therefore, following the ratio of the judgment in the above case of A. N. Chowdhury [1969] 71 ITR 326 (Cal), we answer question No. 1 in....