COMMISSIONER OF INCOME TAX Vs. MATHEW K T

JUDGEMENT

(1.) ALL these five references really centre around our answer as to whether a valid trust is created and thereby the property and naturally the income therefrom gets transferred to the said trust. In other words, out of the following three questions expecting our answer, the fate would be determined by our answer to question No. 1. The three questions are as follows :

(2.) IF the answer to the above question is in the negative, whether the Appellate Tribunal was justified on the facts and in the circumstances of the case in deleting the income from the Victory Offset Printers from the assessment of the assessee ?

(3.) CLAUSE 7 of the said deed of trust specifies the powers in the matters of administration of the trust. CLAUSEs 8, 9 and 10 refer to the problems as succession of trustees by a process of nomination, a provision that the trustees shall hold office during their lifetime leaving option of resignation and the requirement of resort to co-option. CLAUSE 11 of the document makes the present assessee, Sri K. T. Mathew, as the managing trustee with powers to attend to the day-to-day affairs. CLAUSE 12 specifies exercise of powers of the trustees by the managing trustee by himself.