COMMISSIONER OF INCOME TAX Vs. MOTI CHANDRA KANPUR

JUDGEMENT

(1.) THE Tribunal, Allahabad Bench, Allahabad has under S. 256(1) referred the following question:-

(2.) THE assessee and his mother; Smt. Shanti Devi had created a trust by an instrument dt. 26th Sept., 1950 which was subsequently modified by another instrument dt. 21st Oct., 1955. The ITO took the view that the trust was a revocable trust, and hence the income from the trust was assessable in the hands of the two founders. An amount of Rs. 54,000 representing one half of the income of the trust was included in the assessment of the assessee. A further amount of Rs. 27,429 was added as accrued interest income from Roopnarain Ramchandra since dissolved. Apart from these two additions, the ITO added an amount of 50,000 as income from undisclosed sources.

(3.) WE accordingly answer the question in the affirmatives against the Department and in favour of the assessee. The assessee is entitled to his costs which we assess at Rs. 200.