1984 (5) TMI 62

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....ear 1976-77. The assessment with which we are concerned in this appeal is with regard to Peter Luis Trust. One of the properties of the said trust is situated at 8, Turner Road, Bandra, Bombay. The assessee claimed that valuation of the said property should be made under section 7(4) of the Wealth-tax Act, 1957 ('the Act') because the said property was in occupation of the trustee, who had life in....

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....rding to him, a mistake was being committed in those proceedings and that commission of the said mistake did not justify commission of a similar mistake in the wealth-tax proceedings. He declined to interfere in the order of the WTO. 3. The crucial question for decision is whether provisions of section 7(4) would apply to the trust property. The essential condition under section 7(4) is that th....

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....neficiaries. Consequently, even when the property is settled on a trust, the assessees are living persons. 4. In Bai Hamabai J.K. Mehta v. CIT [1948] 16 ITR 115, the Bombay High Court held that where the beneficiary under a trust was entitled to reside rent-free in a property and under section 41(2) of the Indian Income-tax Act, 1922 ('the 1922 Act'), the income-tax authorities assessed the sai....

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.... a house belonging to the assessee and exclusively used by him for residential purpose'. In that case, the house in question had been settled on a trust and the beneficiaries had been residing in the said house. The contention before the High Court was that the house belonged to the official trustee and since the official trustee was not residing in the said house, exemption under section 5(1)(iv)....