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TMI Blog1980 (3) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. The preamble of the Act provides that the trust has been created : " To accompany and support the title and dignity of a Baronet lately conferred by Her Majesty Queen Victoria on him for and during the term of his natural life, and from and immediately after his decease to hold to his second son, Framjee Dinshaw Petit, Esquire, and the heirs male of his body lawfully begotten, and in default of such issue with remainder to the heirs male of the body of the said Sir Dinshaw Maneckjee Petit." Sections 2 and 3 of the Act read as follows : "2. The said Framjee Dinshaw Petit and the heirs male of his body and all other heirs male of the body of the said Sir Dinshaw Maneckjee Petit to whom the said title and dignity shall descend, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision, it was provided that in case any person to whom for the time being the said title of Baronet shall have descended, refuses or neglects to use the names of Dinshaw Maneckjee Petit for the space of one whole year after he attains the age of 21 years or in case any such person having used those names shall, for the space of 6 months thereafter, discontinue to use such names then the estate or interest in the trust fund are to stand suspended and during any and every such suspension, the dividends, interest and income, etc., shall devolve and belong to the person, who, as the sole heir of Framjee Dinshaw Petit or Sir Dinshaw Maneckjee Petit, as the case may be, would have succeeded to and been in the enjoyment of the title of Baronet con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Property Act. The value of the life interest under the assignment dated March 2, 1960, was held to be Rs. 27,266 instead of Rs. 5,58,124. The revenue challenged this order of the AAC. One of the grounds raised in appeal before the Tribunal on behalf of the revenue was that the AAC was in error in holding that the assessee's life interest in the Baronetcy itself was only a spes successionis and that the said life interest had no value. The Tribunal in a very well considered order took the view that the prospects of the assessee becoming a Baronet on the death of the present Baronet wholly depended upon his chance of surviving the present Baronet and even if he survived the present Baronet, he could not acquire the dignity and title of B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther hand, Mr. Dastur appearing for the assessee has supported the view taken by the Tribunal because, according to him, this is a clear case of spes successionis, as succeeding to the title of Baronetcy was dependent upon the assessee agreeing to take the name of D. M. Petit which, according to the learned counsel, was extremely uncertain because if the assessee did not choose to take that name there was not the slightest chance of his stepping into the footsteps of the present Baronet. It is also contended that succeeding to the Baronetcy would also be dependent upon the chance of the assessee surviving at the time of the death of the present holder of the title. It is no doubt true that provisions have been made in the Act which enable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to which he hopes to succeed as heir at law or next of kin of such living person. During the life of such person no one can have more than a spes successionis, an expectation or hope of succeeding to his property." These observations apply with full force to the case before us. The assessee does not automatically succeed to the Baronetcy and, as pointed out by the learned judge, the expectancy or hope of succeeding to the Baronetcy is nothing more than spes successionis as understood in s. 6(a) of the Transfer of Property Act. On a consideration of the provisions of the Act which created the Baronetcy, it is obvious to us that the contention advanced on behalf of the revenue before the Tribunal and on this court that the assessee had any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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