1996 (4) TMI 67

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....come attributable to the contributions made by the assessee to the revocable trust created by her husband for the benefit of his would-be son-in-law/daughter-in-law cannot be assessed to tax in her hands in terms of section 61 of the Income-tax Act, 1961 ? 2. Whether the impugned interest income is taxable under section 64(v), (vi) of the Income-tax Act, 1961 ?" The husband of the assessee created two trusts for the benefit of the would-be daughter-in-law and would be son-in-law. Clause 19 of the trust deed declared that the trusts shall be irrevocable. However, in clause 22 of the said deed it has been stipulated that if the intended marriage did not take place within a period of 20 years from the date of creation of the trusts, the ....

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.... made by her. The Tribunal further held that if at all there was any revocation of the trust funds, it was only in the case of the author of the trusts. It, therefore, concluded that the income arising from the transferred assets cannot be assessed to tax in the hands of the assessee. In so far as the question of the nature of the trusts whether it is revocable or irrevocable is concerned, the arguments advanced by learned senior standing counsel for the Department, as well as by learned counsel appearing for the assessee are similar and identical to the arguments advanced in Tax Cases Nos. 831 and 832 of 1984 (CIT v. M. K. Chandrakanth [1997] 225 ITR 101). In Tax Cases Nos. 831 and 832 of 1984, for the reasons stated therein, we held th....