20,000/ to form the companypus of the permanent trust to meet the expenses relating to the repair of the Tekari Forts, celebration of Durga Puja and other purposes specified.
620 of 1963.
D. Another deed called a deed of amendment was executed by the assessee on January 12, 1942.
D or after the death of the last amongst the sons, whichever event shall last occur, and by the 43rd clause it was provided that if any of the beneficiaries under the deed or their heirs in future shall challenge the Indenture of Re lease and Agreement dated December 6, 1939, executed by the settlor in favour of her husband and the action taken thereunder.
Appeal by special leave from the judgment and decree dated 9, 1961 of the Patna High Court in M.J.C. No.
D thereto and the original deed of trust shall be read and companystrued as if it companytained a power vested in the settlor the assessees during her life by deed to revoke or vary, either wholly or partly, the trust or any provisions of the said trust, but number so as to effect the payment and discharge of the debts and liabilities as mentioned in Sch.
the said beneficiary shall on making such objection forfeit his right as a beneficiary under the deed.
The High Court accordingly directed that the income of the trust property which is the subject matter of the settlement of the trust was, number liable to be assessed to tax under the third proviso to s. 16 1 c , but only so long as the power of revocation ranted by the deed was number exercised by the assessee under the terms ,of the deed of trust.
36 and 37 of the original deed were cancelled and other paragraphs including paragraphs 23, 24 and 42 were amended and modified and paragraphs 42 a , 44 and 45 were added.
D. Karkhanis and R. N. Sachthey, for the appellant.
Against the order passed by the High Court, with special leave, the Commissioner of Income tax, Patna, has appealed to this Court.
This deed was modified by a deed of rectification dated December 22, 1941, reciting that with the companysent of all persons who were parties to the deed of trust, it was directed that at any time during the lifetime of the assessee the assessee had the power to revoke or vary, either wholly or partly, the trust or any provisions of the deed of trust, but number so as to effect the payment and discharge of the debts and liabilities as mentioned in Sch.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The principal beneficiaries under the deed after payment of the debts were the assesses, her husband and her five sons.
D to the deed were paid off and discharged, the settlor shall be entitled to make a permanent trust of some of the villages demised under the deed for the maintenance and up keep of the Tekari Forts, observance of Durga Puja and other purposes specified therein, and in the event of the settlor dying before payment and discharge of the debts and liabilities set out in Sch.
By the 42nd clause it was provided that the trust under the deed shall terminate after payment of the debts and liabilities set out in Sch.
D to set apart property fetching a net income of Rs.
Sarjoo Prasad, B. D. Singh and D. Goburdhn, for the respondent.
April 28, 1964.
The 24th and the 25th clauses dealt with the devolution of the beneficial interest in the event of death of any of the beneficiaries.
By the 23rd clause of the deed it was directed that after making certain payments, the trustees shall divide the sur plus of the net rents, issues and profits thereof in the proportions set out in the clause.
497 of 1957.
The assesses later acquired by purchase a major portion of the remaining ninesixteenth share in the Raj.
By the 41st clause it was provided that after the debts and liabilities set out in Sch.
The judgment of the Court was delivered by SHAH J. Rani Bhuwaneshwari Kuer hereinafter referred to as the assesses was the proprietor of a seven sixteenth share in an estate known as Tekari Raj, having inherited that estate from her parents.
