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TMI Blog1966 (8) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... created in relation to the business which has been held by the Supreme Court to be property and the trustee does not carry on the business on behalf of anybody else - - - - - Dated:- 24-8-1966 - Judge(s) : P. GOVINDAN NAIR., M. S. MENON. JUDGMENT This is a reference by the Income-tax Appellate Tribunal, Madras Bench, acting under section 66(1) of the Indian Income-tax Act, 1922. The quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Question No. 3 will have to be answered in favour of the assessee if the income assessed is " earned income ". But it is urged on behalf of the department that the income is " unearned income " and is therefore subject to the levy of special surcharge which of course is inapplicable in the case of "earned income". It is unnecessary to go into the details of the trust concerned for it has been the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r religious or charitable purposes or in part for such purposes. If so understood, the two limbs of the substantive clause fall into a piece. The first limb deals with a property or a part of it held in trust wholly for religious or charitable purposes, and the second limb provides for such a property held in trust partly for religious or charitable purposes. On the said reading of the provision i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1922, and he invited our attention to a passage from the commentary on the Indian Income-tax Act, 1922, by Kanga and Palkhivala, fourth edition, at page 731. " Where a trustee carries on a business on behalf of the trust estate, the beneficiary would not be entitled to any relief in respect of 'earned income', the reason being that the beneficiary himself does not carry on the business and there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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