KAPOOR CHAND Vs. ASSTT. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The facts in brief, which give rise to the present appeal filed by the Assessee against the impugned judgment dated 24.10.2003 passed by the High Court of Uttaranchal at Nainital, are as under:

(2.) The brother-in-law of the Appellant, namely, Shri Ram Niwas Agarwal had created two trusts for the benefit of two minor children of the Appellant, Kapoor Chand. One trust known as Priti Life Trust was for the benefit of Km. Priti who was aged about 7 years and the other trust was created in the name of Anuj Family Trust for the benefit of master Anuj, minor son of the Appellant, Kapoor Chand. Both these trustees became partners in the partnership firm. The said partnership firm earned profits in the year 1980-1981 with which we are concerned in the present appeal and share of the two trusts was given to them.

(3.) Since these trusts were for the benefit of two minor children of the Appellant, invoking the provisions of Section 64(1)(iii) of Income Tax Act, 1961 (for short "the Act), the Assessing Officer included the said income in the income of the Assessee and taxed as such.