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TMI Blog1980 (1) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... d one-fourth of the income for charitable purposes. According to the terms of theses deeds, the remaining three fourth income should be retained by Mohamed Abdul Khadar and after him his heirs. After the death of Fathima Nachiar, the said Abdul Khadar settled those properties on his three daughters and one son under four settlement deeds dated 17th April, 1970 treating them as properties settled on him by him mother. The appellant-trust was assessed as such for the entire income on those lands for the purpose of Agrl. IT till the asst. yr. 1975-76. During the finalisation of assessment for 1976-77, the assessee filed a return showing that the lands have been settled in favour of his three daughters and one son and the extent held by the tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st Deeds in the year 1948, that he has no power to alienate as per the terms of those deeds of the year 1970 are null and void. As an alternative ground, the appellant has also contended that the estimate of income from the lands by the Agrl. ITO is excessive and not warranted. It was further contended that proper allowance was not given for cultivation expenses. 4. The main question for consideration is whether there was any dedication of the lands in favour of the trust as per the deeds of the year 1948 and whether the settlement deed executed by Abdul Khadar in the year 1970 are invalid. It was vehemently contended that the settlement deeds of the year 1948 executed by Fathima Khadar were only family settlement and there was no dedicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oined to spend the entire income upon the charity, (2) whether the charity would exhaust the entire income or whether three will be a substantial surplus or margin leg after meeting all the expenses and (3) the provision as to the ultimate destination of the surplus. It was further held that if reading the document as a whole is clear that whatever remains, whether substantial or otherwise, after the charities are performed, it is not to form an accretion to the corpus but can be utilised and taken by the Manager or the trustee as his own without any liability to render an account and with no obligation to hold it on behalf of the trust, the endowment will not be an outright dedication but a charge only is created in favour of the charity f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been death with in a very special manner therein. There is absolutely no doubt on the terms of cl. 9 r/w the other material provisions of deed that there is no absolute endowment of the suit property in favour of the temple or for the charities as claimed." Bearing in mind the principles enunciated in the above decisions, we will proceed to consider the settlement deeds of the year 1948 executed by Fathima Nachiar. Though the deed has been styled as "Warf Nama" alias Dharmam settlement deed, it is mentioned even at the outset that she is making some arrangement in respect of her properties. In the very next sentence it is stated that the property should not go out of her family. It has been specifically provided in those settlement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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