Judgment

D.P. Wadhwa, J.-A Division Bench of the High Court of Judicature at Bombay on a reference under Section 256(1) of the Income-Tax Act, 1961 (for short the ‘Act’) decided all the three questions of Law referred to it for its opinion by the Income Tax Appellate Tribunal (‘Appellate Tribunal’ for short) in favour of the revenue. The assessee is ag­grieved. The questions of law are:

“1. Whether, on the facts and in the circumstances of the case, K.R. Patel and B.G. Amin held the properties as trustees from the time of the death of Bhikhubai Chandulal, or whether they held the estate in that capacity from April 5, 1963, when probate of the will was obtained?

2. Whether, on the facts and in the circumstances of the case, K.R. Patel and B.G. Amin received income of certain part of the estate as executors and income of the remaining part of the estate as trus­tees?

3. Whether, on the facts and in the circumstances of the case, K.R. Patel and B.G. Amin were liable to be assessed as trustees as trustees under Section 161 of the Income-Tas Act, 1961?”

These questions arose from the order of the Appellate Tribunal in the fol