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TMI Blog1986 (4) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... r his death shall pay the net income of the trust funds to Bai Khatizabai, the wife of the said Ahmedbhoy Oomerbhoy during her life for her maintenance and support. 3. After the death of the survivor of the said Ahmedbhoy Oomerbhoy and the said Khatizabai the trustees shall distribute the net income of the trust funds among the male children of the said Ahmedbhoy Oomerbhoy and the descendants of such male children from generation to generation for their maintenance and support. 4. On the total extinction of male child or children of the said Ahmedbhoy Oomerbhoy and their descendants the trustees shall hold the trust fund for such religious, pious and charitable purposes as the trustees may, in their absolute discretion, think fit." After ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st funds among the male children of the said Ahmedbhoy Oomerbhoy and the male descendants of such male children from generation to generation for their maintenance and support. On the total extinction on male child or children of Shri. Ahmedbhoy Oomerbhoy and their descendants, the trustees shall hold the trust funds for such religious and pious and charitable purposes as the trustees may in their absolute discretion think fit." Observing further that, at best, it was a case where the beneficiaries were known and determinate and not a case where the shares of the beneficiaries were known and determinate, the WTO has completed the assessment under section. 21(4) of the Wealth-tax Act, 1957 ('the Act'). 3. The Commissioner (Appeals) referre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cretionary trust merely because the rules of succession were not indicated in the deed of trust or that the distribution of the net income was for maintains and support which might mean it would depend upon the number of members of the family. Reliance in this regard in placed out he decision of the Supreme Court in the case of Trustees of H. E. N. Nizam's Family (Reminder Wealth) Trust, the relevant observations being 132 ITR 223 at pages 560-595 and the Bombay High Court's at pages 232-233. It is reiterated that the situation contemplated in clause 4 of the deed of trust has not arisen and, therefore, clause 4 of the deed of trust does not come into operation on the valuation date. 5. The departmental representative has strongly relied o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und for such religious, pious and charitable purposes as they may think fit in their absolute discretion. In this context, we may refer to the observations of the Hon'ble Supreme Court in the case of Trustees of H. E. H. Nizam's Family (Remainder Wealth) Trust, at page 597, where it has been held that no part of the corpus of the trust funds could be assessed in the hands of the assesses but the assessment could be made on the assesses only in respect of the beneficial interests of the beneficiaries in the trust funds under sub-sections (1) and (4) of section 21. If some amount remind untouched as it is found not held by the trustees on behalf of the beneficiaries, determinate or indeterminate, the said amount will remain untaxed. It is per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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