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TMI Blog1969 (5) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ollows : (a) The residuary fund to be held upon trust to pay the income thereof to her said daughter for her life without power of anticipation during any coverture. (b) Power conferred on the daughter by will or codicil to appoint that the income of the whole or any part of the residuary trust fund shall be paid to any husband with whom she may hereinafter inter-marry and who may survive her during his life or for any less period. (c) Subject to the exercise of the power of appointment aforesaid, the capital and income of the fund were to be held in trust for such or more of her issues, immediate or remote, or her adopted children and their issues at such time and if more than one in such shares as the said daughter, by deed or by will or codicil, appoint and in default of such appointment upon trust for all the children or any child (excluding adopted children) of the said daughter who would attain the age of 21 years and if more than one in equal shares. (d) In the event the daughter had no child born to her, then subject to any appointment made by her in favour of any husband with whom she may inter-marry, in trust for such objects and purposes as the said daughter shall by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner held that on the terms and conditions of the will the different beneficiaries and their shares of the residue were not ascertainable. In the premises, he sustained the Wealth-tax Officer's order under section 21(4). Before the Tribunal, it was stated on behalf of the assessee that (a) at the time of hearing of this appeal Mrs. Ezra was more than 70 years old ; (b) she had married in 1926 and her husband was alive ; (c) she had no child born to her ; (d) she had not adopted any child ; (e) she had not made any appointment in favour of her husband ; and (f) she had not declared any trust in respect of the residuary estate by will or codicil. In these circumstances, it was argued before the Tribunal, there were no residuary beneficiaries on the valuation date, who were beneficially interested on the death of Mrs. Ezra. And no assessment could be made on the Administrator-General under section 21(4). The Tribunal was of opinion that an assessment could be made under section 21 only when assets were held on behalf of any person. Further, sub-section (4) of section 21 contemplated, according to the Tribunal, that such persons were in existence on the valuation date but the share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llick, to show that spes succession is can never be transferred. It seems to us that this reference should be decided purely upon construction of the terms of the will of Mrs. Ezekiel. And from this point of view the example of a Hindu reversioner's interest does not appear to be apposite. The facts are that on the valuation date there were reversioners under the will, although there was no evidence as to who exactly they were. The degrees of kindred in a given case can, however, always be computed in the manner set forth in the table of kindred set out in Schedule I to the Indian Succession Act. And the estimated value of the future interests of these reversioners can also be determined. Turning to the will itself we find that the Administrator-General was required to hold the residuary fund on certain trusts. He was asked, inter alia, to pay the income from the trust fund to the testatrix's daughter for life. The daughter was entitled to make different kinds of appointments which were to be operative after her death. Then it is said : " In default of any such appointment the Administrator-General was to hold in trust for the statutory next of kin as if she had died a spinster ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e property held under that deed, therefore, should have been charged in the hands of the respective beneficiaries in respect of the value of interest which each of them had in the corpus either in the hands of trustees or in their own hands. The Bombay High Court has held, that, under the trust, on the relevant date, H would be entitled to the entire income of the trust fund and the heirs of T, according to law, would have a contingent interest in the corpus of the trust property ; there was nothing indeterminate or unknown in this trust deed as regards the shares ; H clearly had only the interest given to her in the net income and had no rights in the corpus of the property, whereas the son of T's brother had on the relevant date a contingent interest in the corpus of the trust property as heir of T, contingent upon H " ceasing to be the wife or widow of T " which contingency would also cover the case of her death. The Bombay High Court has said further that though it would be a difficultthing to compute and determine the share in the case of a life interest or in the case of a contingent remainder, the difficulty of computation should not come in the way of the application of the ..... 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