KAPOOR CHAND (DEAD) vs ASSTT. COMMNR. OF INCOME TAX

The Supreme Court addressed the applicability of Section 64(1)(iii) of the Income Tax Act, 1961, concerning the income of minor children from trusts. The Court held that since the income from the trusts was not to be received by the minors until they attained majority, the provisions of Section 64(1)(iii) and Explanation 2A did not apply, thereby affirming the CIT (Appeals) decision and reversing the Tribunal's order. The outcome favored the appellant, allowing the appeal against the High Court's dismissal.