COMMISSIONER OF INCOME TAX Vs. HAJEE HASSAN YACOOB SAIT
LAWS(KER)-1963-8-35
HIGH COURT OF KERALA
Decided on August 26,1963

COMMISSIONER OF INCOME-TAX, KERALA Appellant
VERSUS
HAJEE HASSAN YACOOB SAIT (DECEASED) Respondents





Cited Judgements :-

SUBRAHMANYA SARMA M VS. COMMISSIONER OF INCOME TAX [LAWS(APH)-1968-11-11] [REFERRED TO]
CHHAGANLAL BAID VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1969-5-3] [REFERRED TO]


JUDGEMENT

- (1.)This is a reference by the Income Tax Appellate Tribunal, Madras Bench, under S.66(1) of the Indian Income Tax Act, 1922. The assessment year concerned is 1957-58; and the accounting period, 1131 M. E. or the twelve months ended 16-8-1956. The question referred is:
"Whether the income derived by Geevarghese Koshy as Managing Trustee of Jeejambhai Trust is taxable in the hands of the assessee either under S.16(1)(c) or 16(3)(b) of the Indian Income Tax Act, 1922 "

(2.)Counsel for the Department submits that he does not propose to depend on S.16(1)(c) and that we need consider the case only with reference to S.16(3)(b). S.16(3) reads as follows :
"In computing the total income of any individual for the purpose of assessment, there shall be included --

(a) so much of the income of a wife or minor child of such individual as arises directly or indirectly --

(i) from the membership of the wife in a firm of which her husband is a partner;

(ii) from the admission of the minor to the benefits of partnership in a firm of which such individual is a partner;

(iii) from assets transferred directly or indirectly to the wife by the husband otherwise than for adequate consideration or in connection with an agreement to live apart; or

(iv) from assets transferred directly or indirectly to the minor child, not being a married daughter, by such individual otherwise than for adequate consideration ; and

(b) so much of the income of any person or association of persons as arises from assets transferred otherwise than for adequate consideration to the person or association by such individual for the benefit of his wife or a minor child or both."

(3.)The instrument by which the assessee created the trust is given as Annexure A to the Statement of the case. The trust is for the benefit of his daughter Jeejam Bhai alias Fathima Bhai who was born on the 12th meenom 1116 M. E. (25-3-1941). There is no provision in the document for the payment of any portion of the income or the corpus of the test properties to the beneficiary until she attained the age of twenty-one years.
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