COMMISSIONER OF WEALTH TAX DELHI AND RAJASTHAN Vs. HER HIGHNESS MAHARANI GAYATRI DEVI OF JAIPUR
HIGH COURT OF RAJASTHAN
COMMISSIONER OF WEALTH TAX, DELHI AND RAJASTHAN
HER HIGHNESS MAHARANI GAYATRI DEVI OF JAIPUR
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(1.) THE following two questions have been referred to this Court under Section 27 (1) of the Wealth Tax Act, hereinafter to be referred as the "act", by the Income-tax Appellate Tribunal Bombay, Bench 'b' :--
" (1) Whether on a proper construction of the deed of settlement the assessee has any interest in the corpus of the deed of settlement? (2) Whether in the facts and circumstances of this case, the right of the assessee derived under the deed of settlement is exempt from Wealth-tax by virtue of the provisions of Section 2 (e) (iv) of the Wealth-tax Act?"
(2.) THE relevant facts giving rise to this reference may be outlined as follows:-
(3.) THE assesaee is Her Highness Maharani Gavatri Devi of Jaipur the assessment year for which the assessment of her wealth under the Act was made was the year 1959- 60 and the valuation date of her assets was 31-3-1959. The assessee is the wife of His Highness Maharaja Shri Man Singhji of Jaipur, hereinafter to be referred as the "maharaja". On 9-9-53. the Maharaja made a settlement in respect of certain War Bonds of the face value of pound 3 lakhs carrying an interest of 3 1/2% for the benefit of his wife, the assessee, and his four sons. Maharaj Kumar bhawani Singh, Maharaj Kumar Jai Singh, Maharaj Kumar Prithviraj and Maharaj kumar Jagat Singh. According to the deed of settlement the Maharaja was a party of the first part and one Sir Harold Augusts Wernher Baronet hereinafter to be referred as the "trustee", was a party of the other part. The Maharaja made an irrevocable settlement of the War Bonds held by him and accordingly transferred them to the name of the trustee. The trustee was to hold them upon trust for the benefit of the five beneficiaries subject to the powers and provisions contained in the deed of settlement. By Clause 3 of the deed of settlement the trustee was enjoined to divide the trust fund into 30 equal parts and was to remain in possession of such parts and income thereof respectively upon trust subject to the powers and conditions contained in the deed of settlement The relevant clause which defines the interest of the assessee as also the other four sons of the Maharaja was as follows :-
"4 (1) The trustee shall stand possessed of fifteen such parts of the Trust fund upon trust to pay the income thereof to the Wife during her life and after her death shall hold the said fifteen such parts of the Trust Fund and the income thereof upon the same trusts and with and subject to the same powers and provisions as are hereinafter declared and contained concerning the share. in the Trust Fund which is hereinafter directed to be held in trust for the said Maharaj Kumar Jagat Singh or as near thereto as circumstances will admit. (2) The Trustee shall hold the remaining fifteen such parts of the Trust fund and the income thereof Upon Trust for the Sons contingently upon their respectively attaining the age of twenty one vears in the shares and proportions following (that is to say): (i) As to ten such parts for the said Maharaj Kumar Bhawani Singh (hereinafter called "the Eldest Son" ). (ii) As to two such parts for the said Maharaj Kumar Jai Singh (hereinafter called "the Second Son" ). (iii) As to two such parts for the said Maharaj Kumar Prithvi Rai (hereinafter called "the Third Son"), and (iv) As to one such part for the said Maharaj Kumar Jagat Singh (hereinafter called "the Fourth Son" ). XX XX XX XX";
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