9911796707
TMI Blog1961 (6) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... It consists in the creation of a trust for effecting insurance on their lives, and for this purpose the employer had to contribute 5% of the employee's salary, whereas the employee had to give 10% of the pay. The trust, in turn, had to take out two separate policies on the employees' lives, and held them in trust. Under the above arrangement, the employer had, for the year ending March 31, 1956, that being the previous year to the assessment year 1956-57, paid ₹ 2,160 to the trustee, the aforesaid amount being the annual premium on the assurance taken by the trust on the life of the assessee, who showed it in part "D" of his return. The Income-tax Officer, however, taxed it as a contribution to an unrecognised provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was employed by a company under an agreement, which provided, in addition to annual salary, an interest in a "conditional fund", which the company had to create by payment at the end of each financial year of a sum out of its profits to the trustees of the fund, to be invested by them in the purchase of the company's shares, or debenture stock. The respondent, who was entitled to the income at the expiration of each financial year, and to part of the capital of the fund at the expiration of five financial years, resigned from the service, when the trustees transferred to him the shares, which they had purchased out of the payments made to them in the years 1922 to 1927. The Income-tax authorities assessed the respondent wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the trustees pursuant to the said regulations shall be held by them in trust for the objects hereinafter defined." "FIRST SCHEDULE REGULATIONS In these regulations, unless the context otherwise requires, words of the masculine gender shall include the feminine. The expression trustee mean the trustees for the time being of the trust deed. The expression society means the Sun Life Assurance Society. The expression employee means each person included in the third schedule who shall sign an application in the form set out in the second schedule hereto and each further employee of Peirce Leslie and Company Limited whose name shall at any time be notified to the trustees by the employer as a person who is to participate in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... *** The date upon which the sum assured would be payable, should the employee so survive, is hereinafter referred to as the date of maturity. The sum assured under each trustees' assurance shall be such an amount as shall be secured by an annual premium equal to five per cent. of the employee's annual salary at the date when such assurance shall commence." "11(a). If before the sums assured secured by the assurances shall become payable the employee shall leave the service of the employer of his own accord or shall be dismissed for misconduct or inefficiency, the trustee shall surrender the trustees' assurance to the society and pay its cash surrender value to the employee or to his wife or to his next of kin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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