The income derived from the said trust fund amounted to Rs.
14,170/ .
The Tribunal was then moved to state case to the High Court on two questions of law those questions were Whether the sum of Rs.
As regards the second sum of Rs.
410/ in the relevant account year and the taxing authorities included this amount in the total income of the assessee, purporting to act under s. 16 3 b and or s. 16 3 a iv of the Income tax Act.
The view of the taxing authorities and the Income tax Appellate Tribunal was that under the aforesaid provision of the trust deed the assessee was the sole beneficiary and that the amount was received by him for his own benefit and he was number accountable to any one in respect of the amount and, therefore, this amount was liable to be included in his total income.
Appeal from the judgment and order dated September 25, 1958, of the Bombay High Court in I.T.R. No.
25,000/ was set apart by the assessee and it was provided that the interest on that amount should be accumulated and added to the companypus and a minor daughter of the assessee, named Chandrika, was to receive the income from the companypus increased by the addition of interest, when she attained the age of 18 on February 1, 1959.
The assessee, who is the respondent before us, was assessed to income tax as an individual in respect of his income for the assessment year 1954 55.
The taxing authorities included in the assessees total income for the year to sums, namely, a sum of Rs.
The said trustees were to hold the trust funds upon trust to pay the net interest and income thereof to the assessee for the maintenance of himself and his wife and for the maintenance, education and benefit of all his children till his death.
323 of 196.
14,170/ it appears that on December 1, 1941, the assessees father had created a trust in respect of some shares and a cash sum of Rs.
N. Rajagopal Sastri and D. Gupta, for the appellant.
On behalf of the assessee the companytention was that the sum of Rs.
410/ aforesaid was number liable to be included in the total income of the assessee inasmuch as Chandrika, the minor daughter of the assessee, had numberright to the income number any beneficial interest therein in the relevant year of account under the provisions of the trust deed and, therefore, neither s. 16 2 a iv number s. 16 3 b applied to the case.
it was stated, accrued as income in the hands of the assessee in the relevant account year from the said trust funds.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
January 31.
14,170/ .
As to the sum of Rs.
The Income tax Appellate Tribunal, on an appeal by the assessee, did number accept these companytentions.
The scheme of the trust deed was that the said sum of Rs.
410/ and a sum of Rs.
On January 12, 1953 the assessee created a trust in respect of a sum of Rs, 25,000/ , the trustees whereof were the Central Bank Executor Trustee Co., the assessee himself his wife and brother.
30,000/ for the benefit of his four sons including the assessee.
J. Kolah, J. B. Dadachanji, O. C. Mathur and Ravinder Narain, for the respondent.
The Judgment of the Court was delivered by K. DAS, J. The Commissioner of Income tax, Bombay City I, has preferred this appeal to this Court on a certificate of fitness granted by the High Court of Bombay under s. 66A 2 of the Indian Income tax Act, 1922.
It was stated that these two sums accrued in the relevant account year in the following circumstances.
3 of 1958.
The trustees were the Central Bank Executor and Trustee Co. Ltd., the assessee himself and one other person.
She was to receive the income during her life time and after her death the companypus was to go to persons with whom we are number companycerned.
