SECOND INCOME TAX OFFICER Vs. M C T TRUST

JUDGEMENT

(1.) THESE are four appeals against the judgment of Ramaprasada Rao J. on the writ petitions filed before him.

(2.) THE said judgment is reported in M. CT. Muthiah Chettiar Family Trust v. 4th Income-tax Officer, City Circle VI, Madras, [1972] 86 ITR 282 (Mad). Though the four appeals relate to different trusts, it is enough for our present purpose to set out the facts in W.A. No. 167 of 1972 as typical of all of them.

(3.) IF the accumulation exceeded 25%, then the excess could also be the subject of exemption provided that the trust complied with certain conditions specified in Section 11(2) of the Act, Broadly speaking, the conditions specified were: (1) the trustees should give a notice in writing to the Income-tax Officer in the prescribed manner specifying the purpose for which and the period for which the income was being accumulated ; and (2) the monies so accumulated were to be invested in any Government security as defined in Section 2(2) of the Public Debt Act, 1944, or in any other security approved by the Central Government in this behalf.