Bombay High Court
Commissioner Of Income-Tax vs Trustees Of Raptakos Brett And Co. (P) ... on 22 November, 1988
Equivalent citations: [1988]177ITR202(BOM)
Author: S.P. Bharucha
Bench: S.P. Bharucha
JUDGMENT S.P. Bharucha, J.
1. This reference concerns the assessment years 1963-64 to 1970-71 and raises at the instance of the Revenue the following questions:
"(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that all the employees of the assessee-company were the beneficiaries under the trust "Trustees of Raptakos Brett and Co. P. Ltd., Employees' Service Gratuity Fund" and as such the beneficiaries were specifically known and determine at the end of each accounting year and that further their shares in the income of the said trues fund were known and determinate ?
(2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the income of the said trust fund received by the trustees for each of the eight assessments 1963-64 to 1970-71 was assessable to income-tax under the provisions of section 161 and not under those of section 164 of the Income-tax Act, 1961 ?"
2. The Tribunal came to the conclusion which are reflected in the questions on the basis of its conclusion in an appeal before it filed in similar circumstances, by the Trustees of Staff Gratuity Fund of Shree Ram Mills Ltd. A reference arising upon the Tribunal's judgment in Shree Ram Mills' case was heard and decided by this court on November 1, 1985, CIT v. Trustees of Staff Gratuity Fund of Shree Ram Mills Ltd. [1986] 162 ITR 471. Therein it was held (a decision to which one of us was a party) that the Tribunal was right in its conclusion. Following the judgment of this court in Shree Ram Mills' case [1986] 162 ITR 471, the questions are answered in the affirmative and in favour of the assessee.
3. We may note that the assessee has not appeared and that Mr. Jettley learned counsel for the Revenue, has fairly brought the true legal position to out notice. No order as to costs.