TaxTMI 
TaxTMI 
2003 (12) TMI 22
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....d Bench "C": "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the resolution dated March 31, 1974, and the letter dated April 1, 1974, changed the provisions of law, clause 1(i)(a) of the deed of trust, when the deed of trust did not confer authority on the trustees to amend the deed of trust? 2. Whether, on the facts and in the circumstances of the case, the provisions of section 164 of the Act did not apply to the assessee by reason of the resolution passed by the trustees on March 31, 1974, even though according to the Tribunal the said section 164 did apply to the deed of trust alone? 3. Whether, on the facts and in the circumstances of the case, the Tribun....
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.... passed a resolution on March 31, 1974, to the effect that the income of the trust arising for the previous year ending on March 31, 1975, be paid to Smt. Mrinalini V. Sarabhai, one of the beneficiaries of the trust, by debiting the said amount to the income and expenditure account in the books of the trust. Necessary intimation of the above fact had been given to the concerned beneficiary. In pursuance of the said resolution, the income for the said year had been given to the beneficiary. The respondent-trust, in view of the fact that the entire income had been given to the beneficiary, had filed an income-tax return showing the total income as "nil". The Income-tax Officer was of the view that the trust was a discretionary trust and the ....
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.... resolution or to adopt any course so as to make it a specific trust. It has been, therefore, submitted by him that looking to the law laid down by this court in the case of CIT v. Ambalal Sarabhai D, Trust No. 5 [1998] 231 ITR 540, the course adopted by the Income-tax Officer was just and proper. It has been, therefore, submitted by him that the Tribunal erred in upholding the order passed by the Appellate Assistant Commissioner, whereby the appeal filed against the order of the Income-tax Officer had been set aside. Shri Bhatt, learned senior standing counsel, has also submitted that there is nothing on record to show that the income, which has been taxed in the hands of the assessee-trust, had also been taxed in the hands of the benefic....
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....at the respondent-trust is a discretionary trust, which had passed a resolution dated March 31,1974, whereby it decided to disburse the income for the assessment year 1975-76 to the above named beneficiary and looking to the law laid down by this court in the case of CIT v. Ambalal Sarabhai D. Trust No. 5 [1998] 231 ITR 540, it is clear that, by virtue of the said resolution, an effort was made to convert the nature of the trust from discretionary to specific. According to the law laid down by this court in the case of CIT v. Ambalal Sarabhai D. Trust No. 5 [1998] 231 ITR 540, it was not open to it to do so and the Revenue had rightly taxed the amount of income, which the respondent-assessee had earned for the assessment year 1975-76, in th....