9911796707
TMI Blog1953 (8) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... as an individual". The assessee in this case is Pandit Thakar Dass Bhargava, an Advocate of Hissar, and the amount in dispute in the present case is a sum of ₹ 32,500 which was paid in the accounting year ending 31st March, 1946. Pandit Bhargava was an Advocate of some eminence on the criminal side, but had almost given up his practice. There was a Hindu-Muslim riot case in Farrukhnagar where several persons were killed and some Hindus of Farrukhnagar were prosecuted for murder. Some leading Hindus of the Gurgaon district "approached" Pandit Bhargava to conduct the case but he refused as he was not in active practice. Ultimately he was persuaded to accept the brief to defend the accused in the Farrukhnagar case in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y stage arise to the assessee. Keeping in mind the express stipulation made by the assessee when he accepted the brief, there was a voluntary trust created, which had to be and was subsequently reduced into writing after the money was subscribed. The payments received from the accused and other persons were received on behalf of the trust and not by the assessee in his capacity as an individual. In this view, we delete the sum of ₹ 32,500 from the assessment". In the statement of the case an extract from the trust deed has been given but the translation is not correct and we had the whole of the deed translated by the official translators and I have quoted from the official translation. The words of the deed of trust and the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age 22, there is a passage which defines what a trust is:- "Every person who receives money to be paid to another, or to be applied to a particular purpose to which he does not apply it, is a trustee and may be sued either at law for money had and received, or in equity as a trustee for a breach of trust. Indeed, in its literal significance the word 'trust' implies the nurturing and sheltering of a sacred confidence. In its more technical significance the word still implies such confidence in a relationship involving a trustee, beneficiary, and a trust res consisting in property". As has been stated in Tudor on Charities at page 52, "a trust is also frequently held to be created by the use of words which are prim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir Lordships of the Privy Council in Bejoy Singh Dudhuria v. Commissioner of Income-tax, Calcutta [1933] 1 ITR 135; ILR 60 Cal. 1029, where by a decree a maintenance allowance was charged upon an ancestral estate in favour of a step-mother and it was held that to the extent of payment to the step-mother what the assessee received was not his income. At page 1034 Lord Macmillan said:- "When the Act by Section 3 subjects to charge ' all income ' of an individual, it is what reaches the individual as income which it is intended to charge. In the present case the decree of the Court by charging the appellant's whole resources with a specific payment to his step-mother has to that extent diverted his income from him and has d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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