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PETITIONER: J. K. TRUST, BOMBAY
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX/EXCESSPROFITS TAX, BOMBAY
DATE OF JUDGMENT: 22/05/1957
BENCH: AIYYAR, T.L. VENKATARAMA BENCH: AIYYAR, T.L. VENKATARAMA BHAGWATI, NATWARLAL H. KAPUR, J.L.
CITATION: 1957 AIR 846 1958 SCR 65
ACT: Income Tax-Trust-Exemption from taxation-Trustees conducting business of Managing Agency for the Trust-Business, whether "Property"-Income from Managing Agency, whether income derived from Property held on trust-Indian Income-tax Act, 1922 (XI Of 1922), S. 4(3)(i) and (ia).
HEADNOTE: A deed of trust whereby a sum of Rs. 1 lac was settled on various charities specified therein provided for the acquisition of the business of managing agency on behalf of the trust and with the help of the trust fund. The trustees of the said trust (appellant) became the managing agents of a public company. The agreement for the agency provided, inter alia, that the agency was for a period of twenty years but that it was open to the trustees to give up the agency on giving three months’ notice and that the managing agents were to get a remuneration of 10 per cent.’ of the net annual profits subject to a minimum of Rs. 50000 and an office allowance of Rs. 1,000 per mensem. The appellant claimed that the income derived from the managing agency was income from property held under trust to be a...