Subsequent to the execution of this deed, the question arose of assessment to income tax of the income from the trust properties for the assessment years 1956 57, 1957 58, 1958 59 and 1959 60.
Appeal by special leave from the judgment and order dated September 27, 1962 of the Bombay High Court in Income tax Reference No.
42 of 1961.
The companyresponding previous years were the financial years ending on 31st March in the years 1956 to 1959.
180 to 183 of 1966.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
Seth Walchand died and, thereafter, Bai Kasturbai, on 21 st July, 1955, executed a deed in which the relevant clause runs as follows Bai Kasturbai Walchand both hereby surrender, release, quit claim, transfer and assign unto the Trustees all the income to arise as from the 21st day of July one thousand nine hundred and fifty five from the Trust funds of the investments for the time being representing the same and her beneficial life interest and all her rights, claims and demands under the said Indenture of Settlement including the liberty to occupy and enjoy rent free of the lands, hereditaments, messages and premises described in the First and Second Schedules hereto the intent that her beneficial interest may be determined as aforesaid and that the same may be immediately vested in the Trustees and that the Trustees may utilise the same for charitable purposes mentioned in the said Indenture of Settlement.
The trustees were both of them themselves and three brothers of Seth Walchand.
Sen, Gopal Singh and B. N. Sachthey, for the appellant in all the appeals .
The two of them together joined in executing an indenture on 25th November, 1946, by which they created a trust.
The Judgment of the Court was delivered by Bhargava, J. Seth Walchand Hirachand and his wife, Dai Kasturbai, owned certain shares, had several insurance policies, owned house property and also held lease lands.
T. Desai and Ravinder Narain, for the respondent in all the appeals .
