ESTATE BHOLANATH DASH Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This reference under Section 66(1) of the Income-tax Act, 1922, involves construction of a deed of trust and determination of tax in respect of the portions of the income from trust properties which are not applied for religious or charitable purposes. The facts underlying this reference are briefly stated as follows:

(2.) The relevant assessment years are 1953-54 and 1954-55, the corresponding accounting periods being the financial years 1952-53 and 1953-54. One Bholanath Dash, since deceased, executed a deed of trust dated December 1, 1934 with the object of making provision for the members of his family dependant on him and for certain religious and charitable purposes. The trust estate consists of very valuable movable and immovable properties which are set out in the Schedule to the trust deed. The important provisions of the trust deed as set out in the statement of case are stated as follows:

(3.) The Assessee, being the trustees representing the trust estate of Bholanath Dash, made various claims, exemption or reduction of income-tax in respect of the income from some of the trust properties. The Income-tax Officer, inter alia, came to the following conclusions: