Bharucha, J. - (1.) These are appeals that relate to the same assessee, Prince Muffakham Jah; they are in respect of the Assessment years 1969-70 to 1975-76 and 1977-78. They raise the same question. That question was referred on the application of the Revenue by the Income Tax Appellate Tribunal to the Andhra Pradesh High Court under Section 27 (1) of the Wealth Tax Act. The question reads thus :"Whether on the facts and in the circumstances of the case the Appellate Tribunal was right in law in upholding the Commissioner of Income-tax (Appeals) order who directed the Wealth Tax Officer to exclude the amount for the assessment year 1977-78 relating to the life interest of the assessee added by the Wealth Tax Officer in accordance with Rule 1B of the Wealth Tax Rules, 1957."
(2.) The principal judgment of the High Court was delivered in the case of Commissioner of Wealth Tax vs. Prince Muffakam Jah Bahadur (1991) 186 ITR 421 : (1989 Tax LR 290), which is challenged in Civil Appeal Nos. 2388-2394 of 1994, and it was followed in the orders which are challenged in Civil Appeal No. 3603 of 1997.
(3.) The assessee is a member of the family of the late Nizam of Hyderabad. One of the several trusts created by the late Nizam for the benefit of his heirs, relations and others was the Prince Mukaram Jah, Prince Muffakkam Jah and Princess Dur-Re-Shewar Trust. The trustees thereof, pursuant to the directions contained therein, constructed a house on specified land. The assessee was entitled under the terms of the trust to live in that house during his lifetime without being required to pay any rent.;