COMMISSIONER OF INCOME TAX CENTRAL Vs. SHYAMLAL BHUWALKA

JUDGEMENT

(1.) This reference under Section 66(1) of (be Indian Income-tax Act, 1922, is at the instance of the Commissioner of Income-tax (Central), Calcutta, and arises out of the income-tax assessment of Shri Shyamlat Bhuwalka, the assessee, in the assessment year 1957-58.

(2.) The facts found and/or admitted arc, inter alia, as follows. The assessee is an individual. He executed a deed of trust on the 8th October, 1953, which was duly registered. Under the deed various sums of money were set apart for charitable purposes to perpetuate the memory of the deceased parents of the assessee and for their spiritual benefit and a public, religious and charitable trust was set up.

(3.) In the assessment the Income-tax Officer added the sum of Rs. 9,738, being the interest accruing to the trust, to the income of the assessee on the ground that the said sums of money had not been handed over in cash to the trustees and that mere entries in the books of a concern which did not have the cash balance cm the date of transfer in favour of the trust did not constitute a gift.