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2005 (6) TMI 37 - HC - Income TaxSufficient consideration for the transfer of assets - "(1) Whether Tribunal was correct in law in holding that the trust created by the assessee for the benefit of his minor daughter in obedience to the terms of decree of divorce passed against him under the provisions of the Parsis Marriage & Divorce Act, 1936, in a suit brought against him by his wife, was for adequate consideration and, therefore, would not fall within the scope of section 64(1)(vii) of the Income-tax Act, 1961?" - The trust was created pursuant to a legal obligation on the part of the assessee and this by itself was sufficient consideration for creation of the trust by way of settling a sum of Rs. 5,50,000, as corpus, the income from which is to be applied for the maintenance of the minor daughter Farida - Since in this case consideration has passed between the settlor and the trust the question of excluding the income from the purview of section 64(1)(vii) does not arise. – no infirmity in tribunal’s finding
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