TMI Blog1993 (7) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... r, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that income of the assessee-trust continued to be receivable on behalf of Mrs. Shirinbai D. Daruwala Children Trust and, therefore, its income was taxable at the maximum rate ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the case of the assessee did not fall within the exemption contained in section 164(3) of the Act ? (4) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the income of the assessee-trust was taxable at the higher rate of 65 per cent. ? (5) Whether, on the facts and in the circumstances of the case, the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oses. It was also contended that the income of the trust should not be taxed at 65 per cent. as section 164(2) was attracted in this case. The Income-tax Officer found that the object of the trust was not charitable or religious ; that the income for two years was not spent for any charitable or religious purposes and that shares of individuals who were beneficiaries under the trust were unknown or indeterminate. He, there fore, computed the tax at the rate of 55 per cent. The assessee preferred two separate appeals to the Appellate Assistant Commissioner but the same were dismissed. The assessee then approached the Tribunal which also dismissed the appeals filed by the assessee. The assessee, therefore, preferred an application under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the right it will have to be stated that the shares of the beneficiaries were indeterminate and unknown. In that view of the matter, the assessee's case fell within section 164 of the Act. Without going into the question whether such trust can be said to be a discretionary trust or not, it can be said that the said trust, at the relevant time, was governed by the provisions of section 164 of the Act. As stated earlier, the purpose of the trust cannot be said to be charitable or religious. Therefore, subsection (2) of section 164 did not have any application. For that very reason, it will have to be stated that even sub-section (3) of section 164 was not applicable. The case of the assessee-trust, therefore, clearly fell within subsectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
