https://www.taxtmi.com/caselaws?id=6983 Under the trust deed, once the first life beneficiaries released their interests, the trustees had absolute discretion to accumulate income or apply it for the maintenance, education and benefit of one or more children to the exclusion of the others. The decisive question was the character of the beneficiaries' shares in the income at that stage, not later corpus distribution or the trustees' book entries. Because no child had a fixed or ascertainable share during the relevant assessment year, the shares were indeterminate and unknown. The first proviso to section 41 of the Indian Income-tax Act, 1922 therefore applied, and the trust income was chargeable at the maximum rate. en-us Thu, 02 Mar 1967 00:00:00 +0530 Sat, 07 Feb 2009 13:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6983 Under the trust deed, once the first life beneficiaries released their interests, the trustees had absolute discretion to accumulate income or apply it for the maintenance, education and benefit of one or more children to the exclusion of the others. The decisive question was the character of the beneficiaries' shares in the income at that stage, not later corpus distribution or the trustees' book entries. Because no child had a fixed or ascertainable share during the relevant assessment year, the shares were indeterminate and unknown. The first proviso to section 41 of the Indian Income-tax Act, 1922 therefore applied, and the trust income was chargeable at the maximum rate. Case-Laws Income Tax Thu, 02 Mar 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6983