1982 (5) TMI 22

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....been referred to this court: " (1) Whether, on the facts and in the circumstances of the case, and on a proper interpretation of the deed of trust executed on July 24, 1959, the Tribunal was right in holding that a legally valid trust had been created and the ownership of 30,000 shares in M/s. Metal Distributors (P.) Ltd. had been transferred by the assessee to the said trust ? 2. Whether, o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ocable trust for the purpose of charity and, therefore, such a conditional transfer did not result in a complete divestment of the shares. He was also of the opinion that the transfer was made in July, 1959, after the close of the accounting year. In order to decide the question it will be relevant to refer to the relevant clause of the trust deed. Clause 15 provides as follows : "The settlor h....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....that is the position, then, in our opinion, there was a legally valid trust and the property has been transferred by the assessee. If that is so, question No. 1 must be answered in the affirmative and in favour of the assessee. If question No. 1 is in the affirmative, then the income of the trust cannot be assessed in the hands of the assessee in the year in question. Therefore, question No. 2 mus....