Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 1961/Wealth Tax Act - Income from Foreign Trust |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Income Tax Act, 1961/Wealth Tax Act - Income from Foreign Trust - Tax liability of the sett/or of the Trust - Held: In view of the facts of the case, the character of the trust is C discretionary and not specific - The discretionary trust gives discretion to the trustee to distribute the income of the tn1st to trust-beneficiaries - But if the trustees fail to distribute in due time, the power to distribute is not extinguished - In the present case, merely because the income has been retained' D and not disbursed to the beneficiaries because th?J seWor failed to appoint the discretion exercisers, the character of the subject trust does not get altered - Therefore, the settler is not liable to pay either income tax on the income from the Trust or wealth tax - The value of the assets cannot be E assessed on the estate of the deceased settor |
Judge | Honble Mr. Justice R. M. Lodha |
Neutral Citation | 2014 INSC 277 |
Petitioner | Commissioner Of Wealth Tax, Rajkot |
Respondent | Estate Of Late Hmm Vikramsinhji Of Gondal |
SCR | [2014] 9 S.C.R. 1 |
Judgement Date | 2014-04-16 |
Case Number | 2312 |
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