Sir Shankar Lall Foundation vs Cwt
2006 Latest Caselaw 1119 Del

JUDGMENT

1. In this reference under Section 27(1) of the Wealth Tax Act, 1957, the following three questions of law have been referred for our opinion:

1. Whether, on the facts and in the circumstances of the case, shares of M/s. Madan Mohan Lall (P) Ltd. in M/s. Usha Sales Ltd. (USL) held under trust is not used/applied directly or indirectly for the benefit of the persons referred to in Sub-section (3) of Section 13 of the Income-Tax Act, 1961?

2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that shares of M/s. Mohan Lal (P) Ltd. and in M/s. Usha Sales Ltd. (USL) are not invested by the assessed in a concern in which any person referred to in Sub-section (3) of Section 13 of the Income-Tax Act, 1961 has substantial interest as provided in Explanation 3 thereof?

3. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the entire assets of the assessed are not liable to wealth-tax under Section 21A of the Wealth Tax Act, 1957?"

2. We find from the decision of this Court in CWT v. Sir Shankar Lall Foundation (2002) 121 Taxman 41 that these very issues were raised, with some modification in that case. Those, issues were answered in the affirmative and in favor of the assessed and against the revenue.

3. In view of the decision rendered by this Court in that case (the same assessed in the present case), the three questions are answered in favor of the assessed.

4. It may be mentioned that the earlier decision of this Court pertains to the assessment year 1973-74 upon which the Tribunal had placed reliance while disposing of the appeal, subject-matter of the present reference.

5. As far as the reference at the instance of the assessed is concerned, the following question of law has been referred for our opinion:

Whether, on the facts and circumstances of the case, the Tribunal was right in law in rejecting the contention that no such person as is referred to Sub-section (3) of Section 13 of Income Tax Act, 1961, existed, as the assessed was a society registered under the Societies Registration Act and in directing that the wealth-tax was leviable on the assessed under Section 2 1 A of the Wealth-Tax Act?

6. According to learned Counsel for the petitioner (sic), this question has to be decided in favor of the revenue.

7. We find that notice has not yet been served upon the assessed in this case. Accordingly, let notice be issued to the assessed only in respect of WTR No. 355/1983.