Ajit K.Sengupta, J. - (1.) In this reference, under Section 27(3) of the Wealth-tax Act, 1957, made at the instance of the Revenue, the following questions are referred by the Tribunal for the opinion of this court : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal misdirected itself in law in holding that the assessee though vested with power of appointment by the will left by the testator could have been assessed only in respect of the value of her life interest in the income of the trust for the purpose of wealth-tax assessment ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the power of appointment vested with the assessee by the will of the testator does not constitute an asset within the meaning of Section 2(e) of the Wealth-tax Act ? (3) Whether, on the facts and in the circumstances of the case and on a correct interpretation of the will in question, the Tribunal was right in law in directing the Wealth-tax Officer to value the assessee's life interest on the respective valuation dates in accordance with law and to substitute the same for amounts included in the relevant assessments and in directing the Wealth-tax Officer to pass fresh assessment orders on the limited issue in accordance with law and to allow appropriate relief to the assessee ?"
(2.) The facts as found by the Tribunal are as under : The assessee along with her three sisters, being daughters of the late Aratoon Stephen (hereinafter referred to as "the deceased") had been enjoying certain benefits from several trusts created by the deceased by his will dated August 15, 1925. The deceased settled certain properties in several trusts and appointed three gentlemen as trustees. He appointed his wife as the guardian of his infant children during her lifetime and after death the trustees were to act as guardians of the said children.
(3.) Particulars of settlement in trust made in favour of the children are set out in paragraphs 7, 8, 9 and 10 of the said will. These very clauses came up for consideration before this court in CWT v. Mrs. Dorothy Martin [1968] 69 ITR 586. On a construction of the various clauses in the will, this court held that the assessee, as a daughter of the testator, was entitled to an aliquot share in the general income of the residuary trust fund and not to a fixed sum payable periodically as annuity and, therefore, the value of her share was properly assessable to wealth-tax as the net wealth of the assessee.;