Judgement

VENKATARAMA AIYAR, J. - This is an appeal by special leave against the judgment of the Bombay High Court passed in a reference under S. 66 (1) of the Indian Income-tax Act, 1922 (herein after referred to as the Act) and Ss. 21 and 19 of the Excess Profits Tax Act, 1940 and of the Business Profits Tax Act, 1947, respectively read with S. 66 (1) of the Act.

The dispute between the parties relates to the assessment of income-tax for the assessment years 1946-47, 1947-48 and 1948-49 and of excess profits tax for the chargeable accounting periods, September 8, 1945 to March 31,1946, April 1, 1946 to March 31, 1947 and April 1, 1947 to March 31, 1948, and it arises out of the same facts and involves the same points for determination.

2. On June 15, 1945 three brothers Sir Padampat Singhania, Lala Kailashpat Singhania and Lala Lakshmipat Singhania who were carrying on business under the name of Juggilal Kamlapat, executed a deed or trust, Exhibit A, whereby they settled a sum of Rs. 1,00,000/- on various charities specified therein and called the J. K. Trust, Bombay, and appointed themselves and two other persons Lala Ramdeo Podar and Sir Chunnilal Mehta as its trustees. The trust