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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 ..... ring before attaining majority?" The reference relates to the assessment year 1983-84. Briefly stated the facts giving rise to the present reference are as follows: The respondent is a trust which had filed its return of income for the first time for the assessment year 1983-84 on January 20, 1986, declaring total income of Rs. 9,105. The return was filed in the status of an association of persons. The trust was created in the form of a letter dated March 29, 1978, which was written by Km. Ranjana Mehra to M/s. Mehra Hosiery Factory Sales, Lucknow, whereby a sum of Rs. 8,900 was settled in trust in favour of two minors girls as the beneficiaries. In the first paragraph of the letter, it was stated that on both the minors attaining majori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st was invalid for uncertainty because the letter dated March 29, 1978, clearly stipulates that both the beneficiaries were to enjoy the income equally. The Tribunal has further held that the status of association of persons could not be adopted in the case and the income should be taxed in the hands of the beneficiaries. We have heard Sri Shambhu Chopra, learned standing counsel for the Revenue. Nobody has appeared on behalf of the respondent-assessee. Learned standing counsel submitted that as the trust deed did not provide for the eventuality of both the minor girls if they die before attaining majority, the trust was invalid. He further submitted that as the trust was invalid the Assessing Officer has rightly assessed the entire incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tinguished,- (a) when its purpose is completely fulfilled; or (b) when its purpose becomes unlawful; or (c) when the fulfilment of its purpose becomes impossible by destruction of the trust-property or otherwise; or (d) when the trust, being revocable, is expressly revoked." From a perusal of the aforesaid provision it is seen that under clause (c) of section 77 of the Indian Trusts Act, 1882 when the fulfilment of the purpose of the trust becomes impossible either by destruction of the trust property or otherwise the trust stands extinguished and the trust property would revert back to the settlor, unless a contrary intention has been expressed in the deed. The word "otherwise" mentioned in clause (c) of the aforesaid Act is wide enou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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