IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME INCOME INCOME TAX REFERENCE NO. 45 OF 1990. TAX REFERENCE NO. 45 OF 1990. TAX REFERENCE NO. 45 OF 1990. The Cmmissioner of Income-tax, Pune. ... Applicant. V/s. Jaya Hind Industries Employees Welfare Fund Trust, Pune. .. Respondent. Shri Ashok Kotangale, Senior Counsel i/b K.C. Sidhwa for the applicant. Shri Pradeep Vaidya i/b S.N. Inamdar for the respondents. CORAM CORAM CORAM : V.C.DAGA AND A.S.AGUIAR, JJ. : V.C.DAGA AND A.S.AGUIAR, JJ. : V.C.DAGA AND A.S.AGUIAR, JJ. DATED DATED DATED : 13th July 2005. : 13th July 2005. : 13th July 2005. P.C. P.C. P.C. : : : ---- ---- ---- . By this reference under section 256 of the Income-tax Act, 1961, the Income Tax Appellate Tribunal has referred the following questions of law for the opinion of this Court: 1. Whether, on the facts and in the circumstances of the case, and in view of the fact that the settlor of the assessee trust is the employer company and some of the trustees were the Directors of the Company having full control and discretion of the funds of the trusts and the funds are to be invested in the manner decided by the settlor company, and thus the trust will remain in existence so long as the settlor company remains in existence, the Tribunal was justified in law in holding that the trusts created by the employer company was not void and against the rule of perpetuity? 2. Whether, on the facts and in the case and in the circumstances of the case the Tribunal was justified in law in holdidng that the assessee trust is to be taxed at the ordinary rate of taxes laid down in the Finance Act in respect of Association of Persons when in fact the assessee is a private discretionary trust, the income of the beneficiaries being indeterminable and unknown and thus not falling under item (iv) of the proviso to section 164(1) of the Income-tax Act, 1961? . For the reasons recorded by us in our judgment dated 1st July 2005 passed in Income Tax Reference No.397 of 1988 (C.I.T. vs. M/s Pithwa C.I.T. vs. M/s Pithwa C.I.T. vs. M/s Pithwa Engg.Works Engg.Works Engg.Works), wherein we have relied upon decision of this Court in the case of C.I.T. vs. Camco Colour C.I.T. vs. Camco Colour C.I.T. vs. Camco Colour Co. Co. Co. (2002) 254 ITR 565, we do not think it necessary to answer the reference made to this Court for the Assessment Year 1981-82, having negligible tax effect. Accordingly, reference stands returned unanswered with no order as to costs. (A.S.AGUIAR, (A.S.AGUIAR, (A.S.AGUIAR, J.) J.) J.) (V.C.DAGA, (V.C.DAGA, (V.C.DAGA, J.) J.) J.)