C.I.T., ANDHRA PRADESH vs TRUSTEES OF H.E.H.. THE NIZAM'S FAMILY TRUST

The Supreme Court held that under the Indian Income Tax Act, 1922, specifically Section 147, the income from the Reserve Fund and the Family Trust Expenses Account of the Nizam's Family Trust cannot be aggregated for assessment purposes. The Court affirmed that the Settlor intended to create separate trusts, and thus, the incomes must be assessed separately for the assessment years 1960-61 to 1965-66. The ruling clarified that a Settlor has the right to establish multiple distinct trusts through a single document.