IN THE HIGH COURT OF GUJARAT AT AHMEDABAD WEALTH TAX REFERENCE No 34 of 1987 For Approval and Signature: Hon'ble MR.JUSTICE M.S.SHAH and Hon'ble MR.JUSTICE D.A.MEHTA ============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements? 2. To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement? 4. Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder? 5. Whether it is to be circulated to the Civil Judge? : NO -------------------------------------------------------------- COMMISSIONER OF WEALTH TAX Versus AMBALAL SARABHAI T NO 28 -------------------------------------------------------------- Appearance: 1. WEALTH TAX REFERENCE No. 34 of 1987 MR BB NAIK with MR MANISH R BHATT for Petitioner No. 1 MR MK PATEL for Respondent No. 1 -------------------------------------------------------------- CORAM : MR.JUSTICE M.S.SHAH and MR.JUSTICE D.A.MEHTA Date of decision: 25/10/2001 ORAL JUDGEMENT (Per : MR.JUSTICE M.S.SHAH) In this reference at the instance of the revenue, the following question is referred for our opinion in respect of assessment years 1973-74 to 1975-76:- "Whether the Appellate Tribunal was right in law and on facts in holding that the assessee is a public charitable trust and as such its wealth is exempt u/s.5(1)(i) of the W.T. Act, 1957 ?" 2. We have heard Mr BB Naik learned counsel for the applicant-revenue and Mr MK Patel learned counsel for the respondent-assessee. 3. Our attention is invited to the decision dated 18-1-2001 in Wealth Tax Reference No.26 of 1985 and the learned counsel agree that the facts giving rise to the present reference are similar to the facts giving rise to the aforesaid wealth tax reference No.26 of 1985. In that decision, this Court held that in view of the scheme of the Wealth Tax Act read with the Income-tax Act, if a trust is recognised as a public charitable trust under the Income-tax Act, it has to be so recognised under the Wealth-tax Act also. Therefore, the provisions of sec. 21-A of the Wealth-tax Act would not be applicable to the trust recognised as a public charitable trust under the Income tax Act. 5. Following the aforesaid decision, we answer the question referred to us in the affirmative i.e. in favour of the assessee and against the revenue. 6. The Reference accordingly stands disposed of with no order as to costs. (M.S. Shah, J) (D.A. Mehta,J) zgs/-