COMMISSIONER OF INCOME TAX Vs. SORABJI NUSSERWANJI PAREKH

JUDGEMENT

(1.) ON being moved under section 256(1) of the Income -tax Act, 1961, the Income -tax Tribunal has referred the following question of law for our opinion :

(2.) IN order to answer the aforesaid question, it is necessary to set out relevant facts herein :

(3.) FROM the aforesaid objects as gathered from the original trust deed, it becomes clear that the institution is established to start an Art and Industrial School at Surat and to give benefit of said school to the inmates of the Surat Parsi Orphanage and other Zoroastrian boys of outside places i.e., the places beyond Surat. However, it is also stipulated that, till the school is established, the trust should accumulate the income and add the same to the corpus. It is further stipulated that as and when the school is started for imparting education, the interest on the entire amount so accumulated should be used for the school. It is thus clear that, even as per the trust deed, establishment of school of Art and Industry for the benefit of inmates of Surat Parsi Orphanage and other Zoroastrian boys of outside Surat was the primary object with which the trust was established.