1988 (8) TMI 162

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... trust. The author of the trust is also a Managing Director of a company, M/s Sri Lakshmi Saraswathy Motor Service Ltd. In the accounts of the assessee-trust maintained with the Indian Overseas Bank, there were two debits totalling Rs. 84,708 on 25th Feb., 1982. This comprised of an amount of Rs. 33,235 appropriated as margin for the letter of Guarantee issued by the bank on behalf of M/s Sri Laksh .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of this assessment, the CIT considered it to be erroneous and prejudicial to the interests of the Revenue inasmuch as the provisions of s. 13(1)(c) were attracted because of non-compliance of its conditions. He accordingly directed the ITO to bring to tax the amount of Rs. 84,507, referred to above. 4. In the appeal before us it was first contended that the provisions of s. 13(1)(c) could not be .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... at the assessee is entitled to succeed. We need not go into the question whether the person referred to in s. 13(3) should be benefited in the same capacity in which he has set up the trust. Suffice it for this case to deal with the alternative argument of the assessee that there is no provision for taxing the corpus of the trust. Sec. 13 states that only s.11 shall not apply so as to operate to e .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X