Decided on December 23,1994



R.P. Garg, Accountant Member - (1.) THESE seven appeals by the assessee and the Revenue are against the orders of the Commissioner of Wealth-tax (Appeals) for assessment years 1984-85, 1985-86, 1986-87 and 1987-88. In all these appeals, the dispute is against assessments made under Section 21(1) of the Wealth-tax Act, 1957, bringing to tax the entire value of the assets held by the Trust. For the sake of convenience, all these appeals are being disposed of by this common order.
(2.) In all the years under consideration, the assessments were made by the Assessing Officer by invoking the provisions of Section 21 (1) of the WT Act - two assessments each for assessment years 1984-85, 1985-86 and 1987-88 on the trustees for the trust represented by Sb. Fatima Fouzia and Sb. Amina Marzia separately and one assessment for assessment year 1985-86 on the trustees for the trust represented by both Sb. Fatima Fouzia and Sb. Amina Marzia. The wealth assessed in all the years represented the value of the Jewellery Fund including sale proceeds of jewellery sold and reinvested in National Rural Development Bonds etc., Housing Fund and Pocket Money Fund, the Expenses fund was already exhausted by the end of March 1982 and there was no question of assessment thereof. The CWT (Appeals), following the Tribunal's decision in the assessee's case reported in Trustees of Wedding Gifts Trust of HEH the Nizam's Two Grand Daughters v. WTO [1989] 30 ITD 490 (Hyd.), held in the first two years that the provisions of Section 21(1) are not applicable but directed to make assessment under Section 21(4) as, according to him, the remainder beneficiaries were not determinate as per the findings of the Tribunal in the aforesaid order. For assessment years 1986-87 and 1987-88, however, the successor CWT (Appeals) cancelled the assessments made under Section 21(1) following the aforesaid order of the Tribunal but gave no further directions to assess under Section 21(4), presumably, because the earlier decision of the CWT (Appeals) was not taken notice of by him. The assessee is in appeal for the first two assessment years whereas the Revenue is in appeal for the latter two assessment years.
(3.) THE facts of the case are as follows: HEH Nb. Mir Sir Osman Ali Khan Bahadur, the Nizam of Hyderabad and Berar, as he then was, created the impugned trust, viz., THE Wedding Gifts Trust of H.E.H. the Nizam's two grand-daughters, on 4-9-1951, out of natural love and affection and diverse other good causes and considerations him thereunto moving, for the benefit of his grand-daughters Sb. Fatima Fouzia and Sb. Amina Marzia, daughters of his second son Walashan Prince Muazzam Jah Bahadur. Six Funds were created under this deed: two Jewellery Funds by setting apart two sets of ladies jewellery of ornamental type as wedding gift each to Sb. Fatima Fouzia and Sb. Amina Marzia; one Pocket-money Fund for their equal benefit by setting apart certain securities worth Rs. 50,000; two Housing Funds, one each for the beneficiaries, by setting apart Government securities worth Rs. 1 lakh each; and one Expenses Fund by setting apart securities worth Rs. 25,000. Various terms and conditions governing the Funds are contained in the Trust deed and they are discussed hereunder. General and Pocket-money Fund;

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