9911796707
TMI Blog1980 (6) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... before his death, the Tribunal is right in holding that there was no reservation of interest by the deceased in the property within the meaning of section 12(1) of the Estate Duty Act, 1953 ? 3. Whether, on the facts and in the circumstances of the case, and on a correct interpretation of the deed of trust, the Tribunal is correct in holding that the trust did not have amongst its purposes the maintenance of the sons of the deceased ? 4. Whether, on the facts and in the circumstances of the case, the Tribunal misdirected itself in law in holding that the word 'and' appearing in the Explanation to section 12(1) of the Estate Duty Act, 1953, was not used in a disjunctive sense and that the reservation of interest for the maintenance must ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fourth schedules of the said deed of trust dated the 10th day of February, 1954, and a list whereof is also set out in the schedule hereunder during the lifetime of myself (settlor) and my said wife, Sm. Purnasashi Dassi, upon trust therein mentioned. 2. The rents and issues and profits arising out the said trust properties including half share in the business of Roy Cousin Co. all fully described in the third and fourth schedules of the said deed of trust dated the 10th day of February, 1954, and a list whereof is also set out in the schedule hereunder written during the lifetime of myself (settlor) and/or my wife, Sm. Purnasashi Dassi, shall be collected and realised by the said trustees, Nirmal Kumar Roy and Sankar Lal Roy, who afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsolutely taken by the sons of the settlor. The Asst. Controller considered that the property was deemed to pass under s. 12 of the E.D. Act, 1953, as, in his view, the settlor had reserved to himself an interest as contemplated by that provision. The accountable person appealed to the Appellate Controller, who held that the trust was for the maintenance of the relatives of the deceased and it came within the scope of s. 12. He agreed also with the other reasons given by the Asst. Controller. There was a further appeal to the Tribunal. The Tribunal held that if the first document alone was there, there was some possibility of accepting the stand of the revenue that the trust came into existence after the lifetime of the settlor and his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , so far as it is material for our present purpose, provides as follows: " 12. (1) Property passing under any settlement made by the deceased by deed or any other instrument not taking effect as a will whereby an interest in such property for life or any other period determinable by reference to death is reserved either expressly or by implication to the settlor or whereby the settlor may have reserved to himself the right by the exercise of any power, to restore to himself or to reclaim the absolute interest in such property shall be deemed to pass on the settlor's death: " The second proviso to the said section is also relevant which provides as follows: " Provided further that a house or a part thereof comprised in such settlement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CED [1969] 73 ITR 241. In that view of the matter, in our opinion, question No. should be answered in favour of the accountable person and against the revenue, in the facts and circumstances of this case. For the reasons aforesaid, question No. 2 must also be answered in the affirmative and in favour of the accountable person. In view of the reasons mentioned before, question No. 4 must be answered in the negative and in favour of the accountable person. In that view of the matter questions Nos. 3 and 5 are of academic interest in this case and it is not necessary for us to enter into these controversies and we decline to answer them. We, therefore, answer the questions in the manner indicated above. In the facts and circumstances of this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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