https://www.taxtmi.com/caselaws?id=10759 The High Court of BOMBAY ruled in favor of the assessee in a case involving the creation of a trust for the maintenance of his minor daughter as directed by a divorce decree. The court held that the trust was established for adequate consideration to fulfill the pre-existing liability of the assessee towards his daughter, exempting it from taxation under section 64(1)(vii) of the Income-tax Act, 1961. The trust was not solely for tax avoidance but was a legal obligation to provide for the daughter's maintenance, as mandated by the divorce decree. en-us Thu, 30 Jun 2005 00:00:00 +0530 Fri, 24 Jul 2009 13:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10759 The High Court of BOMBAY ruled in favor of the assessee in a case involving the creation of a trust for the maintenance of his minor daughter as directed by a divorce decree. The court held that the trust was established for adequate consideration to fulfill the pre-existing liability of the assessee towards his daughter, exempting it from taxation under section 64(1)(vii) of the Income-tax Act, 1961. The trust was not solely for tax avoidance but was a legal obligation to provide for the daughter's maintenance, as mandated by the divorce decree. Case-Laws Income Tax Thu, 30 Jun 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10759