The Appellate Assistant Commissioner upheld the view of the Income tax Officer about the nature of the transactions.
Whether, on the facts and in the circumstances of the case, the creation of a trust by Keshavji in favour of his minor grand children companycurrently with the creation of a trust by Jaysinh in favour of Keshavjis daughters companystitute indirect transfers of assets by Keshavji and Jaysinh to their respective children for the purpose of section 16 3 a iv of the Act ?
With special leave, the Commissioner of Income tax has appealed to this companyrt.
1,54,000 upon his three sisters, Indumati, Kusum and Dipika.
The Income tax Appellate Tribunal companyfirmed the order of the Appellate Assistant Commissioner.
5 lakhs to his son, Jaysinh.
Jaysinh has two infant children, Bipin and Kamla.
4,41,000 in favour of his minor grand children, Bipin and Kamla, and on the same day Jaysinh, by another deed, settled a sum of Rs.
On Junde 14, 1952, Keshavji transferred a sum of Rs.
Keshavji, a resident of Bombay, has a son, Jaysinh, and three daughters, Indumati, Kusum and Dipika, of whom, in the relevant years of assessment, Dipika was a minor.
On February 22, 1954, by a deed, Keshavji settled a sum of Rs.
In proceedings for assessment of tax for the assessment years 1955 56 and 1956 57 the Income tax Officer held that Keshavji had by the settlement indirectly transferred assets belonging to him to his minor daughter and Jaysinh had transferred assets belonging to him to his minor children, and on that view directed that under section 16 3 a iv the income attributable to the share of Dipika be assessed in the hands of Keshavji and the income from the trust created by Jaysinh being in reality for the benefit of his minor children be assessed in his hands.
Shah, J. In a reference under section 66 of the Indian Income tax Act, 1922, the High Court of Judicature at Bombay answered the second question set out herein below in the negative, and declined to answer the first question Whether, on the facts of the case, the provisions of section 16 3 a iv are applicable to the two trusts created by Keshavji Morarji and Jaysinh Keshavji both on February 22, 1954 ?
