TaxTMI 
TaxTMI 
1976 (12) TMI 55
X X X X Extracts X X X X
X X X X Extracts X X X X
....accounting years in view of the consent decree dated 11th April, 1960 ? " Although the statement of case refers to four assessment years, we are really concerned with the two years 1956-57 to 1957-58 only, the corresponding accounting periods being the years ended on 31st March, 1956, and 31st March, 1957, respectively. The assessee is one Mrs. Maltida Ferreira (nee Fonseca). On 21st March, 1923, the assessee's father settled certain properties in trust. The trustees were directed to collect all the rents and profits and to pay therefrom all the costs incidental to the collection thereof and to pay the net income to the settlor for and during his lifetime and up to his death. Clauses 5 and 6 of the deed of settlement in fact made prov....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., Dr. Ferreira executed a deed of mortgage in favour of one Kilachand and one of the securities given under the said deed of mortgage was the Ferreira Mansion. Additional loans were also subsequently taken. Ultimately, on 18th July, 1953, the mortgagee released Ferreira Mansion from the mortgage in consideration of Dr. Ferreira giving other properties in substitution as security. On 19th July, 1953, Dr. Ferreira conveyed the said building to his two sons. It may be mentioned in passing that in respect of the loans taken, Dr. Ferreira had signed several promissory notes and similarly he had also executed various agreements with various parties for the purpose of having the said building constructed. The income from this property, Ferreira....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h that the trust comprising the deed of settlement was not invalid and that clause 8 did not offend the rule against perpetuity and was accordingly valid. As the proceeding by way of originating summons came to be concluded by the decision of the court of appeal, a consent decree was taken in Suit No. 419 of 1954, which was a decree dated 11th April, 1960. A copy of the said consent decree has been annexed as annexure " M " to the statement of case submitted by the Tribunal. Thereafter, the Income-tax Officer concerned took the view that this consent decree had made it clear that the transfer of the properties including Ferreira Mansion was void and inoperative and the same had been cancelled and the breaches committed by the trustees ha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lt with the various aspects relevant and pertaining to the case in paragraph 34 of its order. After marshalling various pieces of evidence, mainly documentary, the Tribunal has observed: " Therefore, the entire evidence would lead only to one conclusion, viz., that the doctor was the owner of the property till it was declared as trust property by the consent decree dated 11th April, 1960 ". It went on to state that there was not a tittle of evidence to show that the trust was the owner of the property. According to the Tribunal, there was also nothing to indicate that Dr. Ferreira was a benamidar of the trust and that the findings of the departmental officers on this aspect of the matter were based on mere conjectures and on wrong premises ....