9911796707
TMI Blog2008 (2) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... tly the respondent was assessed as a trust, Even though the beneficiary was also assessed in his individual capacity on the same income, the respondent - Held that: - trust otherwise created can be revoked only- (a) where all the beneficiaries are competent to contract by their consent ; (b) where the trust has been declared by a non-testamentary instrument or by word of mouth-in exercise of a power of revocation expressly reserved to the author of the trust ; or (c) where the trust is for the payment of the debts of the author of the trust, and has not been communicated to the creditors-at the pleasure of the author of the trust - sole beneficiary opted to revoke the trust in exercise of his authority under section 78 of the Trusts Act, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue and Shri P. Balakrishnan and Shri K. B. Pradeep appearing for the respondent. 3. While clause 15 of the trust deed says that the deed of trust shall be irrevocable, clause 2 provides for duration of the trust as follows :"On the completion of 21 years of age of the said Nelson the trus-tees shall hand over the trust property which shall include the fund and investments representing the same for the time being to the end and intent that the said Nelson shall be the sole and absolute owner of the said trust fund and investments representing the same for the time being provided, however, that if the said Nelson shall die before the date of distribution, the trustees shall pay the trust fund and investments representing the same f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax Depart-ment has no say in it. 6. We are unable to accept the contention of the Revenue based on the decision cited which is not on revocation of the trust. In this regard, we have to refer to clause 78 of the Indian Trusts Act which provides for revocation of trust, which is as follows : "78. Revocation of trust.-A trust created by will may be revoked at the pleasure of the testator. A trust otherwise created can be revoked only- (a) where all the beneficiaries are competent to contract by their consent ; (b) where the trust has been declared by a non-testamentary instrument or by word of mouth-in exercise of a power of revocation expressly reserved to the author of the trust ; or (c) where the trust is for the payment of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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