https://www.taxtmi.com/caselaws?id=8212 Capital gains received by trustees were not taxable at the maximum rate under the proviso to section 41 of the Income-tax Act, 1922, because the persons on whose behalf the gains were receivable were not indeterminate or unknown on the relevant accounting date. The trust deeds showed that the life tenants were in existence and that their children formed a definite and ascertainable class, even though their eventual interests in the corpus were contingent on future events. The test had to be applied by reference to the facts existing on that date, and on those facts the beneficiaries and their shares were capable of determination. The assessee's contention therefore succeeded, and section 17(6) governed the tax treatment. en-us Thu, 09 Apr 1970 00:00:00 +0530 Mon, 06 Apr 2009 09:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8212 Capital gains received by trustees were not taxable at the maximum rate under the proviso to section 41 of the Income-tax Act, 1922, because the persons on whose behalf the gains were receivable were not indeterminate or unknown on the relevant accounting date. The trust deeds showed that the life tenants were in existence and that their children formed a definite and ascertainable class, even though their eventual interests in the corpus were contingent on future events. The test had to be applied by reference to the facts existing on that date, and on those facts the beneficiaries and their shares were capable of determination. The assessee's contention therefore succeeded, and section 17(6) governed the tax treatment. Case-Laws Income Tax Thu, 09 Apr 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8212