9911796707
TMI Blog1994 (7) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... the trust income are determinate and known and the provisions of section 21(4) of the Wealth-tax Act, 1957, do not apply? " The only question in dispute is as to whether the assessment should have been passed under section 21(1) of the Wealth-tax Act, 1957, and not under section 21(4) of the Act while determining the interest of the trustee (sic). According to the assessee, the shares of the beneficiaries were determinate and, as such, the provisions of section 21(1) should have been applied. According to the Revenue, Shri Pusalal Mansinghka, S/o. Seth Mahadeoji Mansinghka, executed a trust deed dated June 29, 1949, creating the assessee-trust and appointed four trustees to execute the same. The trust deed was registered to which certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR 555, it was held by the apex court that the provisions of section 21(1) will apply only where the trust property is held by the trust on behalf of a single beneficiary or where there are more than one beneficiaries, then the individual shares of the beneficiaries in the trust property are determinate and known. If the shares are indeterminate or unknown, the provisions of section 21(4) will apply. There could be another possibility where specific amounts are directed to be paid to certain beneficiaries at certain intervals and in that case, the interest of such beneficiaries in the trust will be considered known and determinate and the provisions of section 21(1) will apply. In the present case, Pusalal Mansinghka executed a trust deed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iving the lady at any time, the trustees would have full power to spend the income of the trust for any charitable purpose ;" The benefit which the lady has derived as a beneficiary cannot be said to be indeterminate. The beneficiary was also known and it cannot be said to be indeterminate so as to attract the provisions of section 21(4). The decision of the apex court in the case of CRT v. Trustees of H. E. H. Nizam's Family (Remainder Wealth) Trust [1977] 108 ITR 555 is fully applicable. Accordingly, we are of the view that the Income-tax Appellate Tribunal was right in holding that the shares of Smt. Jinia Bai and after her death the shares of the other beneficiaries in the trust income are determinate and known and the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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