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1 - 9 of 9 (0.22 seconds)Section 12A in The Income Tax Act, 1961 [Entire Act]
The Income Tax Act, 1961
Thanthi Trust vs Income-Tax Officer on 22 November, 1988
7. The Madras High Court in the case of Thanthi Trust vs. ITO (1973) 91 ITR 261 (Mad) held that if a valid and complete dedication to a trust had taken place, there would be no power left in the founder to revoke and no assertion on his part or the subsequent conduct of himself or his descendants contrary to such dedication would have the effect of nullifying it. If the trust had been validly and really created any deviation by the founder of the trust or the trustees from the declared purpose would amount only to a breach of trust and would not detract from the declaration of the trust and hence the subsequent conduct of the founder in dealing with the funds of the trust long after its creation may not put an end to the trust itself. Thus the law on the subject is well settled that a trust validly created and where the dedication is complete, that becomes an irrevocable trust and any act done by the founder or the trustees thereafter would not nullify the effect of the trust but only would amount to a breach of trust and, therefore, even if the donations are held to be non-genuine, spurious or fictitious, that would not make the trust which is validly created and irrevocable, a non-genuine trust. The view taken by the authorities below is therefore, erroneous. We, therefore, hold that the trust is validly created. As we have pointed out the ITO was carried away by what happened elsewhere, which has no relevance to the facts of the issue. The ITO should have discussed the facts relevant to the issue instead of digressing to the facts in other cases all because the trustees happened to be the trustees there also. A misdeed committed by a trustee elsewhere all be it in another trust having the same objects cannot mean that the same was effected here also. Each has to be decided on its own independent facts.
Section 131 in The Income Tax Act, 1961 [Entire Act]
Section 68 in The Income Tax Act, 1961 [Entire Act]
Section 10 in The Income Tax Act, 1961 [Entire Act]
Section 11 in The Income Tax Act, 1961 [Entire Act]
The Commissioner Of Income-Tax, Delhi vs Pramod Jain Trust, Delhi on 19 January, 1971
In the case of CIT vs. Promod Jain Trust (1971) 81 ITR 604 (Del), the Delhi High Court held that no formal document or other writing was necessary to create a charitable and religious trust. Such a trust could be create by words of mouth as showing an intention to create a charitable or religious trust. If that intention was accompanied with or followed by a formal divesting of ownership of property on the part of the donor and vesting of the same in any other person or even to the donor himself as trustee, the dedication is complete. In this case the settlor had validly created a trust by a document duly registered, which declared his intention very clearly in unequivocal terms and the trust property was settled on the trust and was handed over to the trustees and the trust was made irrevocable, the objects were clearly charitable in nature and, therefore, applying the rule laid down by the Delhi High Court, the assessed trust cannot be said to be a non-genuine trust. In the case before the Delhi High Court the trust was created by a letter. The question arose whether such a trust could be validly created. The Delhi High Court answered the question in the affirmative. The present case before us is much stronger than the case before the Delhi High Court.
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