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TMI Blog1978 (4) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 1,000 to the trust after divesting himself of its ownership. He appointed himself as the sole trustee during his lifetime and his son after his death. The income of the trust was to be spent on various charitable purposes mentioned in the deed. On the same day, Ram Kumar Gupta, the brother of Ram Krishna Gupta, executed a similar deed of trust. He also endowed a sum of Rs. 1,000 to the trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... individual capacities. He came to this conclusion after holding that the trusts were invalid. The income of the partnership firm was assessed and brought to tax in the hands of the two partners as individuals. The two individuals went in appeal but failed. The AAC upheld the findings and the order of the ITO. The two partners then filed an appeal before the Tribunal. The Tribunal held that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e volume of the income which the firm had during this assessment year. The Tribunal went on to hold that the beneficiaries of the trusts were the schools, hospitals and various other charitable institutions. It was settled law that an unborn person could be a beneficiary under a trust. The trusts were hence valid. On these findings, the appeal was allowed and the additions were deleted. At the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies but we did not hear learned counsel appearing for the department to question the finding that a trustee may, in law, enter into a partnership on behalf of the trust or the other finding that an unborn person can validly be a beneficiary under a trust. In view of these two principles of law being well-settled, the rest of the question revolves round a point of fact. The Tribunal has given vario ..... X X X X Extracts X X X X X X X X Extracts X X X X
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