Judgement

Appeal (No. 117 of 1936) from a judgment of the Full Bench of the High Court (June 4, 1935) on a reference made under s. 66, sub-s. 2, of the Indian Income-tax Act, 1922.

The Tribune newspaper and Press were owned by one, Sardar Dayal Singh, who, on June 15, 1895, executed a will by which he created three separate trusts which were to be administered by three independent committees of trustees. The third trust was for the maintenance of the Tribune newspaper and Press in an efficient manner, and for their establishment on a footing of permanency. Clause XXI. of the will provided that "It shall be the duty of the said "Committee of Trustees to maintain the said Press and "newspaper in an efficient condition, keeping up the liberal "policy of the said newspaper and devoting the surplus income "of the said Press and newspaper, after defraying all current "expenses, in improving the said newspaper and placing it "on a footing of permanency.” The appellants, the Trustees of the Tribune Press, Lahore, were the committee of that trust.

Sardar Dayal Singh died in September, 1898. The Tribune Trust had been functioning since his death, and income from the Press and newspaper had b