TaxTMI 
TaxTMI 
1970 (3) TMI 42
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....nder : " 2. The executors and trustees appointed by my said will and hereinafter referred to as my trustees shall divide all the rest and residue of my estate wheresoever situate or treat the same as divided into two equal moieties and shall hold the said moieties upon the respective trusts hereinafter declared with regard to them respectively : .... (d) My trustees shall pay the net income of the other of the said moieties to my son, Dady, until his death or until he shall do or suffer any act or thing the effect of which would be to vest his right to the said income in any other person or persons but for this present provision or to divest him of the said right ; (e) From and after the happening of any of the events terminating the s....
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....leased unto the releases and their respective heirs, executors, administrators and assigns in equal shares. " At the date of this release the assessee had three children, but only one of them, a son named Sheryar, was a minor. The revenue sought to include the income from the trust coming to the share of Sheryar after the deed of release in the assessable income of the assessee on the basis of the provisions contained in section 16(3)(a)(iv) contending that the deed of release was really a transfer by the assessee of his interest under the trust to his minor son, Sheryar. The Tribunal has upheld that contention of the revenue. The question of law referred is : " Whether, on a proper construction of annexure 'A' there was a transfer of a....
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....on may follow as a matter of law, but not by reason of the release effected by the releasor. In a transfer, however, the transfer from the transferor to the transferee takes place by reason of the transfer. The distinction is too clear and has been established for a very long time to need any further elaboration. Mr. R. J. Joshi, the learned counsel for the revenue, however, drew our attention to a decision of this High Court in Commissioner of Income-tax v. Dadabhoy G. Broacha. Each case must, however, turn on the facts of each case, and particularly the words used in the document said to be the document of release. In the document in that case the operative words were " the assignor doth hereby release, surrender, assign and transfer by w....