COMMISSIONER OF INCOME TAX Vs. BANWARI LAL AGARWALA

JUDGEMENT

(1.) THESE six references are under Section 256( 1) of the Income-tax Act, 1961. The assessment years in question are 1966-67, 1967-68, 1968-69, 1969-70 and 1970-71.

(2.) THE Income-tax Appellate Tribunal, Patna Bench "B", Patna, has stated a consolidated case and has referred the following common question of law for the opinion of this court :

(3.) THE assessee thereafter went in appeal before the Appellate Assistant Commissioner. THE Appellate Assistant Commissioner reversed the findings of the Income-tax Officer and allowed the claim of the assessee. THE Appellate Assistant Commissioner considered the terms of the agreement and also went into the history of the trust and held that there was a trust dated January 9, 1964, as a result of which the trust came into existence and in order to give adequate income to the trust, the members of the family decided that 2/3rds of the income from the colliery in question should be treated as income of the trust and the Appellate Assistant Commissioner further found that for this purpose the agreement dated July 12, 1965, entered into with East Bhagatdih Colliery Co. (P.) Ltd. stipulated the payment of 2/3rds of the commission to the trust.