Law:

Section:

[2007] 292 ITR 156 (GUJ.) HIGH COURT OF GUJARAT Sanjiv Family Trust v. Commissioner of Income-tax R.S. GARG AND M. R. SHAH, JJ. IT REFERENCE NOS. 148,149,157,160 TO 164 OF 1995 JULY 13, 2006 Section 160 of the Income-tax Act, 1961 - Trust/trustees - Assessment of n Where question before Tribunal was whether individual shares of persons on whose behalf or for whose benefit income or part thereof was receivable were expressly stated in deed or not and Tribunal did not advert its attention to fact that entire dispute was hinging upon interpretation of trust deed in light of Explanation 1, order passed by Tribunal could not be upheld as without proper interpretation and application of law, it had decided matter against interest of assessee The petitioner-trust was treated as a discretionary trust. The petitioner contended that the original trust namely 'S', had four beneficiaries and as each of them had a determinate/fixed share, beneficiaries were to receive 25 per cent of the income and were also to receive 25 per cent of the corpus on determination of the trust. The petitioner submitted that any act on their part in selling or assigning their right would not make any change in the original trust and a specific trust would not become discretionary trust. The Tribunal decided the matter against the assessee by referring to the assignment. Held that the question was whether individual shares of the persons on whose behalf or for whose benefit such income or such part thereof was receivable were expressly stated in the deed or not and the Tribunal did not advert its attention to the fact that the entire dispute was hinging upon the interpretation of the trust deed in light of Explanation 1. Instead of making any reference to section 164, it had referred to the assignment and after reading of the deeds and documents in juxtaposition, made observation that the act on the part of the assessee and his intention was to deprive the Revenue of its lawful recovery. The order passed by the Tribunal could not be upheld as without proper interpretation and application of law, it had decided the matter against the interest of the assessee. JUDGMENT R.S. Garg, J.-At the very…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492