Consideration for relinquishment of trusteeship in Trust cannot be treated as capital receipt: Kerala HC

PCIT Vs Gracy Babu (Kerala High Court) Kerala High Court held that consideration received by the trustees for relinquishment of trusteeship in the Trust cannot be treated as a capital receipt for the purposes of assessing the same under the head of capital gains. Facts- The Carmel Educational Trust is engaged in running educational institutions that impart education in the subjects of Engineering and Management. The 12 trustees of the trust belong to three closely related family groups. Due to difficulties in managing the college and also due to personal differences, the trustees decided to d...