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1998 (4) TMI 133 - SC - Income TaxWhether, on the facts and in the circumstances of the case, the Trust Fund Prince Shahmat Ali Khan is liable to be included in the estate of late Mir Osman Ali Khan Bahadur under section 10 of the Estate Duty Act, 1953? Held that:- In the present case, the indenture of trust quite clearly provides that the shares have been transferred unconditionally under the deed of trust to the trustees for the benefit of the grandson of the donor. The gift under the trust deed of the shares is absolute. The donor has not reserved any right or interest to himself in the gifted property under the deed of trust. The only clause on which the Revenue has relied is a clause which provides that the trustees may, by unanimous resolution, provide for any remuneration to themselves subject to a maximum of Rs. 3,000 per annum. This refers to a subsequent act of the trustees. It does not, in any manner, make the settlement of shares conditional. Moreover, in the present case, we have been informed that no such resolution was ever passed, nor was any remuneration received by any of the trustees including the donor who was one of the trustees. In these circumstances, we fail to see how the provisions of section 10 are attracted. In the premises, we allow the appeal, answer the question in favour of the accountable person and hold that the corpus of the trust fund is not liable to be included in the estate of the deceased. The respondent will pay to the appellant the costs of the appeal.
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