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TMI Blog1977 (12) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... stituting the settlors as the trustees and the waqf was for the benefit of their children. The material clause, on the construction of which the decision of the question referred depends, reads as follows: "Provided always that the settlors during their joint lives and after the death of either of them, their survivors shall be the sole managing trustees or trustee of these presents and the said third trustees Nawabzada Meer Sultan Alam Khan Saheb or any other person or persons shall not be entitled to interfere with the management of the trust premises or in the execution of the trusts created by these presents until the deaths of the settlors and further that it shall be lawful for the present trustees, during their respective lives an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to her during her lifetime as provided by the waqf dated 21st February, 1938. The effect of this deed was that though she relinquished all her right, title and interest in the balance of the income or produce of the trust property during her life for her own absolute use and benefit the other provisions contained in the deed of waqf were not in any way affected and they were to remain in full force and operation and the deceased was during her lifetime to be the sole managing trustee of the waqf deed with the same powers of management and supervision as were contained in the original indenture of settlement. It was expressly provided in the document that except for what was stated in the said release deed, all the provisions contained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d dated 2nd February, 1954, the right to occupy one of the flats free of rent was specifically reserved by one of the settlors. He took the view that the interest as reserved was not surrendered or terminated till the date of her death and, therefore, the whole value of the property known as "Belha Court" was dutiable under s. 12 and not under s. 11 of the E.D. Act. The Tribunal, while dealing with the appeal, has recorded a finding that the deceased personally had no interest either in the trust property or in the income therefrom after the execution of the release deed dated 2nd February, 1954, and after the release, all that she was entitled to, was to occupy a flat as a trustee so that the property could be managed properly and effic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion reproduced above has been referred to us. It was argued by Mr. Joshi appearing for the revenue that on the finding that the deceased was in possession of the flat and that by the terms of the original waqf deed it was intended that the settlors were to have a right to occupy one of the flats in the trust property, it must be held that an interest in the flat was reserved expressly by the settlors and that oil the death of the deceased settlor that interest had ceased and, therefore, at least the value of the flat was liable to be included as a part of the assets for the purposes of the assessment of the estate duty. This contention will have to be negatived, firstly, on the findings recorded by the Tribunal and, secondly, on the ter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to occupy a part of the trust property and the purpose of making this provision, on the terms of the waqf deed, was that it would enable the trustee or trustees to better manage the trust premises. So far as the waqf deed is concerned, there can be no doubt that the settlement has been effected in respect of the entire trust property, viz., the "Belha Court". The clause relating to the trustee being able to occupy one of the flats in order to manage the trust property is in fact a part of the arrangement relating to the management of the trust property itself. If the property, which was immovable property, had to be managed, it cannot be said that the settlors were unjustified in making provision for a trustee to reside in the trust p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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