9911796707
TMI Blog1991 (3) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... were liable to pay tax on 75 per cent. of its total income at the maximum rate of 65 per cent. as provided by section 164 of the Income-tax Act, 1961 ?" One Shri Chiranjilal Shrilal Goenka settled some of his properties on trust by an indenture dated June 30, 1962. The indenture, inter alia, provided that the trust income shall be accumulated for 18 years. Thereafter, 25% of the trust fund along with its accumulations will be spent on charity as mentioned in clause 4 of the indenture and the remaining 75% will be handed over to the wife or widow of the settlor's son, Shri Radheshyam Chiranjilal Goenka, who may be then living and if, at the relevant time, there is no such wife or widow of the settlor's said son, then that portion of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here any income in respect of which the persons mentioned in clauses (iii) and (iv) of sub-section (1) of section 160 are liable as representative assessees or any part thereof is not specifically receivable on behalf or for the benefit of any one person or where the individual shares of the persons on whose behalf or for whose benefit such income or such part thereof is receivable are indeterminate or unknown (such income, such part of the income and such persons being hereafter in this section referred to as 'relevant income', 'part of relevant income' and 'beneficiaries', respectively), tax shall be charged (i) as if the relevant income or part of relevant income were the total income of an association of persons, or (ii) at the rate o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be available for receiving that portion of corpus of the trust, are all matters of conjecture. In case he does not marry or even if he marries but his wife or widow is not available at that time, then the corpus is supposed to go to the heirs of the settlor, and that may include Radheshyam if he is available or may include many others including Radheshyam. In the circumstances, it is difficult to accept that, to the extent of 75% of the income, the share of the beneficiary is known and determinate. Before concluding, we may refer to the Madras High Court decision in CWT v. Trustees of the Estate of V. R. Chetty and Brothers [1979] 120 ITR 329, on which reliance was placed by learned counsel for the assessees. In our judgment, that d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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