TaxTMI 
TaxTMI 
TaxTMI 
1961 (10) TMI 100
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....essee in favour of his minor grand children, concurrently with the creation of a trust by the assessee's son in favour of the assessee's daughters, constitutes an indirect transfer of assets to his children, for the purposes of section 16(3)(a)(iv ) of the Act ?" The assessee, Keshavji Morarji, transferred a sum of ₹ 5,00,000 to his son, Jaysinh, on the 14th of June, 1952. Thereafter, on the 22nd of February, 1954, Keshavji made a settlement of ₹ 4,41,000 in favour of his minor grandchildren, who were the son and daughter respectively of his son, Jaysinh, under a deed dated 22nd of February, 1954. On the same day Jaysinh, the son of Keshavji, executed a trust deed settling a sum of ₹ 1,54,000 upon his three s....
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....ion need not be answered. Before dealing with the same, we may, however, point out that the said question requires to be reframed. As it reads, it only relates to one of the two trusts, namely, the trust executed by Keshavji in favour of his grandchildren. Since the decision of the Tribunal and the question raised thereon relate to both the trusts, the question will have to be reframed as follows : "Whether, on the facts and in the circumstances of the case, the creation of a trust by Keshavji in favour of his minor grandchildren concurrently with the creation of a trust by Jaysinh in favour of Keshavji's daughters, constitute indirect transfers of assets by Keshavji and Jaysinh to their respective children, for the purposes of s....
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....blish that the trust deeds were executed each in consideration for the other and the simultaneous execution of the two deeds constituted but a single transaction whereby each of the settlors made provision for his own minor children. It may be pointed out that, at the date of the execution of the trust deeds, the settlements have been made out of properties, which belonged exclusively to each of the two settlors. The extent of property settled tinder the two trust deeds is also not the same. As has been pointed out by the Madras High Court in C.M. Kothari v. Commissioner of Income-tax [1958] 34 ITR 317, the fact that there are cross-gifts either by itself or taken with in the fact that the gifts are simultaneous in point of time, does not e....