1992 (11) TMI 16

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..... rtment has sought and obtained reference under section 256(1) of the Income-tax Act, 1961, of the following three questions which relate to the assessment year 1972-73 " 1. Whether, in relation to the previous year ended March 31,1972, the beneficiaries of the income under the trust were the settlor's grand-daughters, Chhaya and Sangeeta, or also Pushpaben, the wife of the settlor's son, Gunvant .....

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..... ted among the granddaughters and the daughter-in-law at any time after the expiry of a stipulated period, the Revenue had taken the view that the daughter-in-law was also one of the beneficiaries under the trust, and since she had income chargeable to tax, the trust could not avail of the exception clause under section 164 of the Income-tax Act, 1961. This court, after analysing the provisions of .....

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..... court are answered as under: Question No. 1 : In relation to the previous year ended March 31, 1972, the beneficiaries of the income under the trust were the settlor's grand-daughters, Chhaya and Sangeeta. Pushpaben, the wife of the settlor's son, was not a beneficiary. Question No. 2 is answered in the affirmative and in favour of the assessee. Question No. 3 is answered in the affirmative .....

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