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Showing contexts for: void trust in Sukhdeo Charity Estate vs Income-Tax Officer on 20 May, 1991Matching Fragments
3. The main grievance of the petitioner is that there is no question of escape of income from assessment for the year 1964-65 as the petitioner has disclosed all the facts and the same were noted by the Income-tax Officer including the receipt of Rs. 70,000 received by the petitioner-trust from the Calcutta trust. Thus, it was submitted, the above notice is void ab initio.
4. A reply has been filed by the respondents and they have traversed this ground.
5. Mr. Bhandari, learned counsel for the petitioner, has pointed out that this question may not be necessary at this stage because, in a similar matter arising out of the same trust for a sum of Rs. 1,00,000 for the water supply scheme at Ladnu, a notice was given and ultimately a reference was made by the Tribunal to the High Court for the year 1965-66 and in which in a somewhat identical situation, the High Court has taken the view in the case of the petitioner-trust that the amount which has been received by the petitioner-trust cannot be said to be taxable and could not be included as part of the assessable income of the trust. Learned counsel has relied upon the decision given by this court in Sukhdeo Charity Estate v. CIT [1984] 149 ITR 470. In this case, the question which was referred to the High Court reads as under (at p. 471) :