https://www.taxtmi.com/caselaws?id=29317 The High Court held that the trust was created bona fide for the benefit of the relatives of the settlors, contrary to the Tribunal's finding. The Court emphasized that the trust's creation must be considered bona fide based on circumstances at the time of establishment, not solely on subsequent conduct. The trust deed granting discretion to trustees for beneficiaries' welfare indicated bona fide creation, despite temporary non-application of income for trust objects. Consequently, the trust should not be taxed at the maximum rate of 65%, as determined by the Tribunal. en-us Tue, 02 Jun 1981 00:00:00 +0530 Fri, 12 Mar 2010 11:40:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29317 The High Court held that the trust was created bona fide for the benefit of the relatives of the settlors, contrary to the Tribunal's finding. The Court emphasized that the trust's creation must be considered bona fide based on circumstances at the time of establishment, not solely on subsequent conduct. The trust deed granting discretion to trustees for beneficiaries' welfare indicated bona fide creation, despite temporary non-application of income for trust objects. Consequently, the trust should not be taxed at the maximum rate of 65%, as determined by the Tribunal. Case-Laws Income Tax Tue, 02 Jun 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29317