TMI Blog1994 (12) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was for the benefit of five beneficiaries who are particularly identified in the indenture of trust. Their shares are also specified. Trustees are appointed by the founder and their powers are defined. One was that they could carry on business using the trust fund for the benefit of the beneficiaries. In exercise of such power the trust was carrying on business upto 1984-85. 3. The trust h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te for the assessee, made various submissions in support of his plea. It was his contention that the trust was carrying on business in silk fabrics till 1984-85 and that business was stopped only with the intention of putting an end to the business activity of the trust in view of the amendment brought by s. 161(1A). It was also his case that the licence obtained under the sales-tax law was surren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d "business". There is also reference to the decision of the Supreme Court in the case of McDowell Co. Ltd. vs. CTO (1985) 47 CTR (SC) 126 : (1985) 154 ITR 148 (SC) to say that this is a device for tax avoidance. I do not think the order of the ITO could be supported on any of the reasonings he has given in his order. 7. Erstwhile business of the assessee was in silk fabrics. That is admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institutions. The details of the advances are in the schedule attached to the balance sheet and a copy thereof is at page 14 of the compilation. One of the debtors is an investment company. Money might have been advanced to other traders. Merely on the basis of that factor it cannot be said that the assessee was doing business of moneylending. In fact, the trust does not even hold a licence to le ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
