TaxTMI 
TaxTMI 
1971 (12) TMI 10
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....d as trust to be divided notionally into 50 equal units, out of which groups of units were allocated to different members of the family regarding which provisions were made in the trust deed, dated December 29, 1950. We are now concerned with 20 such units which were allotted for the benefit of one Amina Marzia, second daughter of the settlor's second son, Prince Muazzam Jah Bahadur. The relevant portion of clause 8(a) of the trust deed, dealing with this part of the settlement, reads as follows : " (a) to hold the 20 (twenty) equal units of the corpus of the trust fund allocated to Dulhan Pasha Begum, wife of the settlor upon trust to accumulate the income thereof during the lifetime of the said Dulhan Pasha Begum and if the trustees so t....
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....umulated income thereon totalling up to Rs. 2,10,807, to estate duty, on the ground that the entire estate passed to the accountable persons, viz., the trustees. On appeal, the Appellate Controller of Estate Duty confirmed the same, and on further appeal to the Appellate Tribunal, it held that no property passed on the death of Dulhan Pasha Begum and cancelled the assessment. Hence the reference for the determination of the question : " Whether, on the facts and in the circumstances of the case, and on a proper interpretation of clause 8(a) of the deed of H. E. H. the Nizam's Pocket Money Trust, the value of the corpus of 20 units allotted to the deceased and the accumulations of income therefrom passed on the death of the deceased ? " It....
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....property as a whole which takes place at the death. Later, Viscount Haldane L. C. in Neville v. Inland Revenue Commissioners stated that the word " passes " may be taken as meaning " changes hands ". Subsequently, in Scott v. Inland Revenue Commissioners Lord Russell of Killowen held that in order to constitute a passing of property on death within the meaning of section of the U. K. Finance Act, 1894, there must be a passing beneficially from some person or persons to another person or persons, though, in that case, the accountable person there was held finally responsible as the entire estate had passed to him, on the ground that, on the death, the trust that began was different from the one that ended. As observed by Lord Radcliffe in Pu....
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....son and 3/5ths to his other children living on his death and if no children surviving, there was to be a gift-over to the settlor's next of kin at his death and the settlor died without making any further provisions, leaving a son and three daughters, the question arose whether the trust funds and accumulations passed on the death of the deceased and it was held by the House of Lords by a majority, that they did not, on the ground that the son was given an immediate vested interest in the property and his interest was defeasible only if his father exercised special power of appointment or if he had died within the lifetime of his father, but as these did not happen, the property did not change hands or pass and on the death of the father, t....
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....nued, that it was a discretionary trust, the purpose of which was and continued to be to provide for the support of such of the parties to the marriage and their issue as should be from time to time living. The present case is a simple one, where the beneficiary under the trust is one Amina Marzia and her heirs, and the beneficial interest of the said Amina Marzia was linked with the life of Dulhan Pasha Begam, the wife of the settlor. What motives moved the maker of the trust in fixing the lifetime of Dulhan Pasha Begum for the variation of the interest in the beneficiary is not clear. Probably, the time factor was thought of for the purpose of allowing the beneficiary to become mature in mind, in order to handle the income that she was a....