TMI Blog1931 (8) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... rch 11, 1929, in view of the circumstances of the case and the provisions of ss. 40 and 55 of the Indian Income Tax Act, 1922. 2. The corporation referred to are the trustees under a private Act No, IV of 1913 which was passed by the Governor General of India in Council entitled an Act for settling certain properties belonging to Sir Currimbhoy Ebrahim, Baronet, so as to accompany and support the title and dignity of a Baronet and for other purposes connected therewith . Shortly before the passing of the Act Sir Currimbhoy Ebrahim had been created a Baronet and the purpose of the Act according to the preamble was to make provision for keeping up the Baronetcy. By Section 2 of the Act there was constituted a corporation with perpetual su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he collection of rent. 3. The second Baronet died in March 1928, that is to say, just before the end of the financial year 1927-28. On September 26, 1928, the trustees under the Act made a return for Income Tax for the year 1928-29, that is, the year expiring on March 31, 1928, and on October 11, 1928, the Income Tax officer made an order on the trustees to pay the Income Tax. On February 22, 1929, the trustees paid the tax. On March 11, 1929, the trustees were assessed to super-tax and they objected to the assessment and it was owing to their objection that this case was stated. 4. It appears from the case that for the previous year 1927-28 there had been an arrangement between the Commissioner and the trustees under which the truste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of, this Act in respect of all income, profits and gains of the previous year of every individual, Hindu undivided family, company, firm and other associations of individuals. 6. I think the corporation constituted by the special Act is an individual within that section. The learned Commissioner seems to treat it as an association of individuals, but I think myself it comes within the term individual, and not an association of individuals, and on the words of that section it seems to me clear' that the trustees can be charged, if you take that section alone. 7. When one comes to the later assessing Sections 22 and 23, they seem to me to contain nothing to prevent the trustees being assessed. But Mr. Coltman relies very strongly on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... somebody who cannot deal with it, say, an infant or lunatic, or in cases of trusts for accumulation of income, and then he sums up the matter thus (p. 72):- The fact is that if the Income Tax Acts are examined, it will be found that the person charged with the tax is neither the trustee nor the beneficiary as such, but the person in actual receipt and control of the income which it is sought to reach. The object of the Acts is to secure for the State a proportion of the profits chargeable, and this end is attained (speaking generally) by the simple and effective expedient of taxing the profits where they are found. If the beneficiary receives them he is liable to be assessed upon them. If the trustee receives and controls them, he is pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plainly in respect of that twenty five per cent. the trustees are the only persons who can be assessed and charged because the income never goes into anybody else's hands It seems to me that the Commissioner is entitled under Section 3 of the Act to assess and charge the trustees, and there is nothing in any other part of the Act, so far as I can see, which prevents him from doing so. There is no express provision that trustees are not to be charged, and it is obviously a convenient course in this case to charge the trustees. The difficulties which arise in the case of an ordinary trustee, who has got other income vested in him--either trust income or private income of his own--on which he may be assessed, cannot arise here because the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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