1998 (8) TMI 19 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee in a case involving Wealth-tax Act and Income-tax Act. The court held that funds transferred to a revocable trust by the assessee cannot be taxed in her hands as they were considered absolute gifts. The interest income from the contributions made to the trust was also not taxable in her hands. The judgment was based on a previous case involving similar issues. The court answered the questions in favor of the assessee and against the Revenue.