COMMISSIONER OF INCOME-TAX Vs. DEVSHI TRUST

JUDGEMENT

(1.) This is a reference u/s. 256(1) of the Income-tax Act, 1961, made by the Income-tax Appellate Tribunal ("the Tribunal" for short). The question referred by the Tribunal is arising out of its order passed in I. T. A. No. 3053 (Bom) of 1985 for the assessment year 1982-83. The same reads as under :

(2.) The factual matrix reveals that the respondent (assessee) was assessed in the status of an association of persons. On May 25, 1979, one Pushpa F. Shah created a trust by handing over Rs. 5,000 to two trustees, viz., Shri Bipin Amritlal Kothari and Smt. Bharati Bipin Kothari, in the presence of one Shri Hasmukhlal Panachand Sheth. It may be mentioned that Pushpa F. Shah is a sister of Shri Bipin, while Smt. Bharati is a wife of Bipin A. Kothari.

(3.) On May 25, 1979, each of the two trustees and the witnesses swore an affidavit wherein they have given full details as to the purpose of the trust, powers of the trustees, the name of the beneficiaries, etc.