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TMI Blog2005 (3) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be said to be invalid merely because the settlor has not taken care of the eventuality of both the beneficiaries dying before attaining majority -we answer the question referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue - - - - - Dated:- 23-3-2005 - Judge(s) : R. K. AGRAWAL., PRAKASH KRISHNA. JUDGMENT The Income-tax Appellate Tribunal, Allahabad has referred the following question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for opinion to this court: "Whether on the facts and in the circumstances of the case, the Tribunal was legally justified in holding the assessee trust to be a valid one in spite of the fact that the trust deed did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity and became absolute owners of the property. Considering all these facts, the Income-tax Officer had held that the entire income should be assessed in the hands of the settlor and as the settlor was reported to have already expired, in the hands of legal heirs. However, as the trust had offered the income for taxation the assessment in that case was completed on a protective basis on the same income as disclosed in the return adopting the same status as shown by the respondent. Feeling aggrieved, the respondent preferred an appeal before the Appellate Assistant Commissioner, who had rejected the appeal. He had agreed with the findings given by the Income-tax Officer. Still feeling aggrieved, the respondent preferred second appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to tax at the hands of the settlor. After giving anxious consideration to the various submissions made by learned standing counsel, we find that it is not the case that the beneficiaries in the trust deed have not been named. In the event one of the beneficiaries dies before attaining majority the other minor girl who is the beneficiary would become the sole beneficiary and absolute owner of the property on attaining majority. So far as the question of taking care of the eventuality in case both the minor girls expire before attaining majority is concerned that would not render the trust invalid inasmuch as section 11 of the Indian Trusts Act, 1882 takes care of the said situation. For ready reference provisions of section 11 of the Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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