1996 (2) TMI 12 - SC - Income Tax

Whether Tribunal was justified in law in holding that the sum received by the assessee from various discretionary trusts could not be taxed in the hands of the assessee u/s 166 - whether the Tribunal was justified in law in holding that the said sum was exempt from tax inasmuch as the said sum was paid out of dividends received by the trusts, which were exempt from tax u/s 80K - first question is answered in favour of revenue and second question is remitted back to the High Court

Summary

The Supreme Court allowed the appeal, answering Question No. 1 in favor of the Revenue and against the assessee. The High Court's decision was reversed, and the case was remitted back to the High Court to decide Question No. 2 in accordance with the law.