| Case ID |
1f483b86-f467-4dab-9b8a-ae509f073238 |
| Body |
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| Case Number |
CIVIL APPEAL No. 1850 OF 1967 |
| Decision Date |
Aug 18, 1971 |
| Hearing Date |
|
| Decision |
The Supreme Court held that the trust created by the assessee was genuine and fulfilled the conditions laid down in the third proviso to section 16(1)(c) of the Income-tax Act, 1922. It ruled that only the income received by the settlor could be assessed as his income, while the income accruing to other beneficiaries was not to be included in the total income of the assessee. The appeal was allowed, and the judgment of the High Court was set aside. |
| Summary |
This case revolves around the interpretation of the Income-tax Act, particularly section 62 and section 16(1)(c). The Supreme Court examined whether the trust created by Hrishikesh Ganguly was revocable or irrevocable. The Court concluded that the trust was genuine, and although the settlor retained a portion of the income, it did not render the entire settlement revocable. The judgment clarifies the conditions under which a trust can be considered revocable, impacting taxation. This case highlights the nuances of tax law and the importance of trust deeds in determining tax liabilities, making it a significant ruling for tax practitioners and individuals involved in estate planning. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
K.S. Hegde,
A.N. Grover
|
| Lawyers |
M.N. Banerjee,
P.K. Mukherjee,
Jagadish Swarup,
R.N. Sachthey,
B.D. Sharma
|
| Petitioners |
Hrishikesh Ganguly
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1971 SLD 689 = (1971) 82 ITR 160
|
| Other Citations |
Ramji Keshavji v. CIT [1945] 13 ITR 105 (Bom.),
CIT v. Rani Bhuvaneshwari Kuer [1964] 53 ITR 195,
CIT v. Jitendranath Mallick [1963] 50 ITR 313 (Cal.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
62,
16(1)(c)
|