Commissioner Of Income Tax v. Arzeez Khambhatta Family Trust

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No 22 of 1985 For Approval and Signature: Hon'ble CHIEF JUSTICE MR DM DHARMADHIKARI and Hon'ble MR.JUSTICE A.R.DAVE ============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements? 2. To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement? 4. Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder? 5. Whether it is to be circulated to the Civil Judge? : NO 1 to 5 No -------------------------------------------------------------- COMMISSIONER OF INCOME TAX Versus ARZEEZ KHAMBHATTA FAMILY TRUST -------------------------------------------------------------- Appearance: MR AKIL QURESHI for MR MANISH R BHATT for Petitioner MR HM TALATI for Respondent No. 1 -------------------------------------------------------------- CORAM : CHIEF JUSTICE MR DM DHARMADHIKARI and MR.JUSTICE A.R.DAVE Date of decision: 29/08/2000 ORAL JUDGEMENT (per D.M. Dharmadhikari, C.J.) �The following 2 questions of law have been referred to us for answer in this Reference : �"1. Whether, on the facts and in the circumstances of the case and true interpretation of the trust deed the trust could be said to be a specific trust and its income could be treated as exempt? �2. Whether, on the facts and in the circumstances of the case, the assessee trust could not be considered as a discretionary trust liable to be taxed under provisions of section 164(1) of the Income-tax Act, 1961?" �The learned counsel appearing for the department has placed before us a copy of the judgment of the Division Bench of this Court dated 9.2.99 (to which one of us, A.R. Dave, J. was a party) in I.T.R. No. 160/84 in a case of the same assessee. It is stated that the questions referred to us have been squarely answered in favour of the assessee quoting that "it is a specific trust". �Since the questions referred to us are squarely concluded in favour of the assessee, in assessee's own case (CIT v. Areez Khambhatta Family Trust) by a judgment of this Court in I.T.R. No. 160/84, the two above-referred questions are answered in favour of the assessee and against the revenue. �The Reference stands disposed of with no order as to costs. ���(D.M. Dharmadhikari, C.J.) ���(A.R. Dave, J.) (hn)