GULATI,J. - (1.) THIS is a reference under S. 27(1) of the WT Act, 1957.
(2.) ONE Sri Pyare Lal Banerji had created a Trust by a deed dt. 26th Oct., 1937 in respect of Government securities etc. of the face value of rupees ten lacs. The Imperial Bank of Calcutta was the trustee. It was provided in the Trust Deed that on the death of the settlor the bank shall pay the interest income of the trust fund to the settlor's son, Sri P.K. Banerji during his lifetime and on the death of Sri P.K. Banerji and Sri Sunab K. Banerji, another son of the settlor. The testator died in 1952 the income of the trust fund was to be paid to his wife Smt. Shakuntala Benerji and the trustee bank started paying the income arising from the trust fund to P.K. Banerji and after his death on 20th of July, 1973 to his wife Smt. Shakuntala Banerji. Shakuntala Banerji, who is the assessee in the present case, contended that the income paid to her was an annuity exempt from tax under S. 2(e)(iv) of the Act. A similar question came up before this Court in the case of her late husband, Sri P.K. Banerji and a Division Bench of this Court in P.K. Banerji vs. CWT (83 ITR 117) held that the interest income paid to Sri P.K. Banerji in accordance with the terms of the trust deed was annuity exempt under S. 2(e)(iv) of the Act. On the basis of that decision the Tribunal allowed the contention of the assessee and held that the income payable to her was exempt from Wealth Tax Act the instance of the CWT the following question of law has been referred to us : "Whether the interest of the assessee in the Trust Fund amounted to an annuity exempt under S. 2 (e)(iv) of the WT Act." The point raised in the instant case is clearly covered by the decision of this Court in the case of P.K. Banerji vs. CWT (supra). Following that decision, we answer the question in the affirmative in favour of the assessee and against the Department. The assessee is entitled to the cost which we assess as Rs. 200.;