https://www.taxtmi.com/caselaws?id=64719 A purported trust arrangement was held to lack commercial substance where the trust was created with a nominal corpus, the sole trustee was also a beneficiary, and the deed gave wide discretion over the trust fund and beneficiaries' shares. The tribunal found that the original family business continued in substance under the same control, while the lease and re-lease arrangements had no real commercial purpose. Earlier acceptance in routine assessments did not bar scrutiny in a later year because each assessment year is separate and res judicata does not apply. The arrangement was treated as a colourable device to divert business income and avoid tax, and the revenue authorities' finding was upheld. en-us Tue, 13 Aug 1991 00:00:00 +0530 Wed, 09 Feb 2011 14:57:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64719 A purported trust arrangement was held to lack commercial substance where the trust was created with a nominal corpus, the sole trustee was also a beneficiary, and the deed gave wide discretion over the trust fund and beneficiaries' shares. The tribunal found that the original family business continued in substance under the same control, while the lease and re-lease arrangements had no real commercial purpose. Earlier acceptance in routine assessments did not bar scrutiny in a later year because each assessment year is separate and res judicata does not apply. The arrangement was treated as a colourable device to divert business income and avoid tax, and the revenue authorities' finding was upheld. Case-Laws Income Tax Tue, 13 Aug 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64719