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TMI Blog1980 (3) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... s provided as follows: " 2. The trustees shall stand possessed of the said securities and investments (hereinafter called 'the Trust Fund') upon the following trusts, that is to say :-.... (c) After the death of the settlor upon trust to pay the net income thereof to the settlor's son the said Dinshaw Cawasji during his life and (d) ........ " The relevant clauses under the will provided for a monthly payment of Rs. 400 to be paid to the wife of the settlor during her lifetime or widowhood for her own maintenance and so far as the assessee was concerned the accumulated income of the residual movable estate was to be paid to the assessee and all other children of Dinshaw Cawasji. It may, however, be noted that the assessee was the only so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... children shall attain the age of majority and thereafter UPON TRUST to pay the income of such residuary movable estate and accumulation, to my said son Kali and to all my other children for his and their respective lives (if any)..." With reference to these different provisions in the will and in the trust deed dated 19th November, 1941, the question before the WTO in the wealth-tax proceedings in respect of the wealth of the assessee, Kali Dinshaw Cawasji, and his mother, Mrs. Allu Dinshaw Cawasji, was whether the life interests of the assessee for which provision was made in the two trusts can be excluded from their respective net wealth under the provisions of s. 2(e)(iv) of the W.T. Act. Under s. 2(e)(iv), it was provided that assets i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as an exempted asset under s. 2(e)(iv). On these facts, the following question has been referred at the instance of the revenue : " Whether, on the facts and in the circumstances of the case, the life interests of the assessee under the two trusts, i.e., one created by the deed dated November 19, 1941, and the other created under the will dated May 30, 1938, were annuities exempt from wealth-tax under section, 2(e)(iv) of the Wealth-tax Act ?" Mr. Joshi in support of the reference has argued that the matter now stands concluded by the decision of the Supreme Court in CWT v. Arundati Balkrishna [1970] 77 ITR 505 and that in view of that decision, the life interest of the assessee cannot be considered as an annuity within the meaning of s. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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