TMI Blog1967 (2) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... e trustees from the trust properties from May 20, 1955, onwards was exempt under section 4(3)(i) of the Act ? " The brief facts upon which the question has been referred are as follows : On 24th October, 1944, the late Sir Kikabhai Premchand, the settlor, executed a trust deed in respect of 300 shares of the Bank of India Ltd. and 100 shares of the Bombay Life Insurance Co. Ltd. The provisions of the trust deed were that the income from the trust property was to belong to Sir Kikabhai Premchand during his lifetime. On his death the income was to go to Lady Kikabhai Premchand if she survived him. By clause 1(b) of the trust deed, Lady Kikabhai Premchand was entitled to the net income "' during her lifetime without power of anticipation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after her death the trust fund shall be held upon the same trusts and subject to the same powers and provisions as are provided in the said settlement after the death of the survivor of the settlor and the said Lady Lily Kikabhai Premchand. " After this relinquishment by the settlor, the income from the trust fund was continued to be paid to Lady Kikabhai Premchand until the death of Sir Kikabhai Premchand on December 5, 1953. No amount was paid to Lady Kikabhai Premchand after the death of Sir Kikabhai Premchand. On May 20, 1955, Lady Kikabhai Premchand executed a deed whereby she in her turn relinquished and surrendered her life interest with a view to accelerating the subsequent trust in favour of charity. The relevant clause was as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided on October 31, 1966. The clause in that case, clause (8), was in almost identical terms. We shall presently refer to one point of distinction which Mr. Joshi has pointed out on the basis of which he urges that the conclusion should be different in the present case. The question as originally framed in that case was in identical terms with the question framed in the reference before us. In that case the Supreme Court was concerned with a trust deed executed by Seth Walchand Hirachand and his wife, Bai Kasturbai, and after the lifetime of Seth Walchand, Kasturbai similarly relinquished the life interest which she had in the trust properties in favour of certain charities previously established. The relevant clause in that case was clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e between the present case and the case of the Walchand Trust before the Supreme Court. Mr. Joshi has urged that Lady Kikabhai Premchand had no power whatever to thus relinquish her interest and if that be so, the question referred does not arise for consideration. No doubt, this question was raised before the Tribunal as appears from paragraph 4 of the Tribunal's order dated 7th February, 1961, but after it was negatived it does not appear that the department at any stage agitated it any further. Certainly when the reference was asked for and when the present question was referred, no further steps were taken by the department to get the question now sought to be raised referred to this court. A similar attempt was made in the Walchand T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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