MAHADEV TRUST Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) : The following three questions have been referred to us by the Tribunal, Ahmedabad, for our opinion :

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal was right in holding that the payments made to the two hereditary trustees or pujaris are not remuneration for the services rendered by them and that such payments are nothing but application of the income of the trust ?

(3.) THE trust, therefore, carried the matter in further appeal before the Tribunal, which rejected the same having regard to the provisions of the scheme of the trust. It held that what was paid to the hereditary trustees or pujaris was not the remuneration for the services rendered by them because the true effect of the payments was the application of the income and it had no direct or indirect relation with the services, if any, rendered by the two hereditary trustees. THE Tribunal confirmed the view of both the lower authorities that the case fell under S. 11(1)(b) and not under S. 11(1)(a) of the said Act. At the instance of the assessee-trust, therefore, the questions set out hereinabove have been referred to us for our opinion.