COMMISSIONER OF INCOME TAX GUJARAT Vs. JAYANTILAL AMRATLAL

JUDGEMENT

(1.) - These four appeals by special leave are directed against the judgment of the Gujarat High Court in Income-tax Reference No. 19 of 1962, whereby the High Court answered the questions referred to it by the Income-tax Appellate Tribunal against the Commissioner of Income-tax, who is the appellant before us. The reference was in respect of assessment years 1955-56 and 1956-57 in the case of Shri Jayantilal Amratlal (Individual) and in respect of assessments years 1958-59 and 1959-60 in the case of Jayantilal Amratlal Charitable Trust, Ahmedabad. The questions referred are:

(2.) The answer to these questions depends on the true interpretation of S. 16 (1) (c) of the Indian Income-tax Act, 1922, and the interpretation of the Trust Deed dated June 19, 1947, and to appreciate the points fully it is necessary to give a few facts which are stated in the statement of the case.

(3.) Jayantilal Amratlal, individual, herein after referred to as the settlor, executed a trust deed whereby he settled 80 ordinary shares of M/s. Jayantilal Amratal Ltd., on trust and created a trust known as "Jayantilal Amratlal Charitable Trust" to carry out the following various objects set out in the Trust Deed :