LAKSHMI NARAIN LATH TRUST Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) WE have before us a reference made by the Income-tax Appellate Tribunal (Delhi Bench " B ") under Section 66(1) of the Indian Income-tax Act, hereinafter to be referred as the "Act", which was made at the instance of the assessee, Messrs. Laxnu Narain Lath Trust, Mandrella, Jhunjhun, hereinafter to be referred as the "assessee". The question formulated by the Tribunal was in the following terms :

(2.) THE assessee was taxed as an association of persons and the assessment covered four assessment years, namely, 1954-55, 1955-56, 1956-57 and 1957-53. THE trust was created by one Laxmi Narain Lath who had executed the indenture of trust on 25th August, 1948. THE settlor of the trust, Laxmi Narain Lath, was residing at Banaras. Four trustees were appointed ; one was the settlor himself, the other trustee was the son of the settlor, and there were two other trustees who belonged to the Lath family. A sum of Rs. 5,000 was set apart for charity and upon the trust as mentioned in the deed. THE objects of the trust were as follows: " (2) THE objects of the trust shall be :

(3.) BOTH the learned counsel placed reliance on Commissioner of Income-tax v. P. Krishna Warriar. The material passage on which both the learned counsel lean is as follows :