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Interpretation of trust deed regarding the right of residence of the deceased in trust properties. Analysis: The case involved a reference under section 64(1) of the Estate Duty Act, 1953, regarding the inclusion of trust properties in the taxable estate of the deceased. The deceased, Dr. T. N. Banerjee, had created a trust with various beneficiaries and trustees, including himself. The crucial clauses for consideration were 6, 8, and 10 of the trust deed, which outlined the duties of trustees and the right of residence. The main issue was whether Dr. T. N. Banerjee had the right of residence in the trust properties mentioned in schedules A, B, and C of the trust deed. The counsel for the assessee argued that the deceased, as chairman, did not reserve any right of residence in the trust properties based on clause 10 of the deed, which seemingly empowered the right of residence on trustees only. However, the court disagreed with this interpretation. It was highlighted that the deceased was also a trustee, and clause 10 granted the right of residence to all trustees, including Dr. T. N. Banerjee. Despite the lack of specific mention regarding the chairman's right of residence, since the chairman was essentially a trustee, all trustee rights were vested in him. Therefore, the court concluded that the deceased had the right of residence in the trust properties, and this right was legally includible in the estate of the deceased. In conclusion, the court answered the question in the affirmative, favoring the Revenue and ruling against the assessee. No costs were awarded in the case. The judgment was agreed upon by both judges, and a copy was directed to be transmitted to the Assistant Registrar, Income-tax Appellate Tribunal, in accordance with the Estate Duty Act, 1953.
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