1982 (1) TMI 37

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..... as merely a contingent interest ? 2. Whether, on the facts and in the circumstances of the case, the inclusion of the entire value of the corpus of the trust fund in the net wealth of the assessee was justified ? " It is common ground that question No. 1 does not correctly bring out the controversy between the parties. With the consent of the counsel appearing on both the sides, the said question is, therefore, refrained as follows : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the interest which the assessee had in the corpus of the trust fund under the trust deed dated 29th March, 1957, was merely a contingent interest ? ", The facts giving rise to this reference are .....

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..... ay to the said Jehangir or to expend or utilise on his behalf or for his benefit such sums of money out of the corpus of the remaining trust fund as the trustees may in their absolute discretion think proper from time to time, it being intended that the trustees shall be entitled so to pay, utilise or expend the corpus or any Part thereof to any extent they consider fit and so that such corpus or part of the corpus shall be paid, expended or utilised for any business in which the said Jehangir may be interested or for his marriage or for his expenses of travel or on account of or in respect of any unforeseen circumstances or otherwise howsoever for the benefit of the said Jehangir as the trustees may in their absolute discretion consider fi .....

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..... (c) for the benefit of the assessee. The assessee had no right to demand from the trustees that they should spend any particular amount for any of the purposes set out in cl. 6(c) and hence the assessee could not be said to possess any " asset " as far as the provisions of cl. 6(c) of the trust deed are concerned. It is from this decision of the Tribunal that the aforesaid questions have been referred to us. On a plain reading of sub-cl. (c) of cl. 6 it clearly appears that it was entirely in the discretion of the trustees to expend or utilise for the benefit of the assessee such sums of money out of the corpus of the trust fund, as they, in their absolute discretion, thought fit for any of the purposes set out in the said sub-clause. Th .....

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