9911796707
TMI Blog1984 (10) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by a partnership deed dated 1-7-1976. There are five partners. They are : 1. Shri Jogendra C. Thakker, 2. Shri Ajit Kumar Mulji Thakker, 3. Shri Jagdish Chandrakant Thakker, 4. Shri Madhusudan Mulji Thakker, and 5. Shri Chandrakant Mulji Thakker. The second, fourth and fifth partners have become partners of the firm in a representative capacity, namely, as the managing trustees of 'Suchita Benefit Trust', 'Dharmesh Benefit Trust' and 'Bijal Benefit Trust', respectively. There was only one beneficiary in each trust. They were minors. They were Miss Suchita, Master Dharmesh and Miss Bijal, respectively 5. Registration of the firm was refused by the ITO on the ground that the trust had been formed to circumvent the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gift of Rs. 2,500 (Rupees two thousand five hundred only) in cash from Mrs. Kusum Ajit Kumar Thakker of 509, Anant Deep Chambers, 273/277, Narshi Natha Street, Bombay 400009, in terms of Deed of Gift executed on the 24th day of June, 1976. Whereas the said Kumari Bijal, daughter of Mr. Madhusudan Thakker is entitled to the said sum of Rs. 2,500 (Rupees two thousand and five hundred only) which is now deposited in the partnership firm of Chandrakant Brothers, having its registered office at 509, New Anant Deep Chambers, 273/77, Narshi Natha Street, Bombay 400009. Whereas the settlor desires that the above-mentioned credit balance of Rs. 2,500 (Rupees two thousand five hundred only) should be held by the trustees upon trust powers and prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contended by the learned departmental representative that the gift is antecedent to the constitution of the trust and that the amounts had become the property of the minors before the constitution of the trusts. The learned departmental representative also supported the order of the AAC on the ground relied on by the ITO, namely, that the trust was constituted to defeat the provisions of section 64(1) and, further, that the effect of the constitution of the trust is that the minors are made to suffer the loss of the firm. 11. We may first consider the correctness of the finding of the ITO that the trust was constituted to defeat the provisions of section 64(1) and that the minors will be made to suffer the loss occurring to the firm and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts and not with regard to the amounts belonging to the minors as per the gifts. On a careful consideration of the matter, we are unable to accept the contention advanced by the learned representative. The preamble clearly says that the minors have received the gifts of the amounts in cash in terms of the gift deeds executed on the same day. The settlors, therefore, chose to make a specific gift of the amounts to the minors and that too by executing gift deeds. It is then stated in the preamble that the minors are entitled to the amounts gifted and that the amounts are deposited in certain partnership firms. Then comes the recital that the settlor desires that the credit balance in the firm in favour of the minor should be held by the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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