LAWS(KER)-1987-7-77

PARTHAS TRUST Vs. COMMISSIONER OF INCOME TAX

Decided On July 29, 1987
PARTHAS TRUST Appellant
V/S
COMMISSIONER OF INCOME-TAX Respondents

JUDGEMENT

(1.) TRUSTS have fought pitched battles in the tax fields. The law reports present pictures of many such fights between the assessee and the Revenue. Authoritative text books on trusts or charities now devote substantial space for discussion of taxation problems of the trust. Underbill notes :

(2.) YET at page 398, that book itself provides a topic " Tax Avoidance " and states :

(3.) THE last two decades witnessed a spurt in the " trust " litigation in this court. Conflicting views on very many facets of trusts and their functioning sometimes appear in decided cases : Dharmodayam Company's case [1962] 45 ITR 478, Shree Shaila Industrial and Spiritual Colony Charities' case [1973] 87 ITR 175 (Ker), Dharmadeepti's case [1975] 100 ITR 375 (Ker) [FB], Vanchi Trust's case [1981] 127 ITR 227 (Ker), Kumaraswamy Reddiar's case [1982] 138 ITR 808 (Ker), P. Krishna Warriar's case [1964] 53 ITR 176 (SC) and Indian Chamber of Commerce's case [1975] 101 ITR 796 (SC) are some of the important' decisions on the topic during this period. Some of the complexities of the problem have been referred to in CIT v. Dharmodayam Co. [1977] 109 ITR 527 (SC).