1998 (4) TMI 133

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..... he Revenue. The present appeal is from this judgment and the order of the High Court. The facts broadly stated are as follows : H. E. H. the Nizam Sir Mir Osman Ali Khan Bahadur died on February 24, 1967. Under an indenture made at Hyderabad on March 21, 1957, he created a trust known as Prince Shahmat Ali Khan Trust settling certain shares specified therein for the benefit of his grandson. Clause 18 of the trust deed provides as follows : Clause 18 : It is hereby further expressly agreed and declared that each of the trustees shall be entitled to charge remuneration and be remunerated for rendering service as trustees of these presents out of the income of the trust property and the trustees shall pay such remuneration to each of the tr .....

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..... persons. In that case the donor had given a gift of certain amounts to the donees. A week later the donees requested that a partnership be formed. The amounts gifted were retained and returned as share capital of the donees in the partnership firm. The court held that when the gift was made and accepted, it was unconditional. In the light of the letter which was written by the donees, the court was of the view that there was nothing to suggest that parting with the enjoyment or benefit by the donee or permitting the donor to share them out of the bundle of rights gifted in the property, was referable to the gift. The two were independent transactions and hence the gift cannot be subjected to the provision of section 10. The wording of sec .....

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..... ase are very different from the facts of the present case. In the case of Oakes [1954] 26 ITR (Suppl) 1, the testator who owned a grazing property in New South Wales, Australia, executed a deed poll under which he created a trust in respect of his grazing property for himself and his four children as tenants in common in equal shares. The deed gave him wide powers of management. In particular, it provided that in addition to reimbursing to himself all expenses incurred in the administration of the trust, he was entitled to remuneration for all work done by him in managing the trust property on which he resided with his family in his capacity as trustee and manager, in the same manner and as fully in all respects, as if he was not a trustee .....

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