At this time, Messrs. E. D. Sassoon and Co., Ltd. were the managing agents of a public Company called the Raymond Woollen Mills Ltd. The firm of Juggilal Kamlapat of which the three Singhania brothers were the partners, acquired a companytrolling interest in the said Mills by purchase of the shares of Messrs. E. D. Sassoon and Co. therein and following on this, the share holders passed a special resolution on September 3, 1945, appointing the trustees of the J.K. Trust as managing agents of the Company in the place of Messrs. E. D. Sassoon and Co., Ltd., who resigned.
The dispute between the parties relates to the assessment of income tax for the assessment years 1946 47, 1947 48 and 1948 49 and of excess profits tax for the chargeable accounting periods, September 3, 1945, to March 31, 1946, April 1, 1946, to March 31, 1947 and April 1, 1947, to March 31, 1948, and it arises out of the same facts and involves the same points for determination.
On September 10, 1945, a memorandum of agreement, Ex.
On June 15, 1945, three brothers Sir Padampat Singhania, Lala Kailashpat Singhania and Lala Lakshmipat Singhania who were carrying on business under the name of Juggilal Kamlapat, executed a deed of trust, Ex.
B, was duly executed by the Company companystituting the trustees of the J.K. Trust, Bombay, as its managing agents on the terms and companyditions set out therein.
It is to be numbered that the five persons named as trustees under Ex.
The trust deed provided inter alia that the trustees may with the help of the trust fund, for and on behalf of and for the benefit of the trust, carry on such business including the taking up and companyducting the managing agency or selling agency of any companypany in such name or manes as they in their absolute discretion may think fit and proper and may close and re start such business and utilise the profits for all or any of the objects aforesaid Large powers were companyferred on them in the companyduct of the business, and they were also authorised to raise or borrow money required for the purpose of the trust.
A, whereby they settled a sum of Rs.
1,00,000 on various charities specified therein and called the J.K. Trust, Bombay, and appointed themselves and two other persons Lala Ramdeo Podar and Sir Chunnilal Mehta as its trustees.
