TMI Blog1995 (12) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... l fall for determination as to when did the legacy vest in the legatees or did the legacy vest at all. 2. Shri Pradumansinhji, Ex-ruler of Rajkot died on 9-11-1973, leaving a Will dated 30-9-1973. According to the said Will, the Testator bequeathed certain properties to certain specific legatees and residuary estate to Shri Manoharsinhji -- eldest son of Shri Pradumansinhji. The specific legacies, amongst others, i.e., to which this dispute relates were as follows : (i) Grass Godown property to Narendrakumariba Trust (ii) Paddock Land Property to Kumar Trust (iii) Saloon Shed Property to Marriage Maintenance Family Trust. It would be worthwhile to reproduce the relevant paragraphs of the Will : " 4(a) I hereby bequeath my ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the demise of the said Narendrakumari Pradumansinhji Jadeja shall hold the Trust property for such charitable purposes as they think fit with power to hand over the same to any charitable Institution or Institutions. 5(a) I hereby bequeath my " Paddock land Property " at Rajkot to my Trustees to be held by them as Trustees of the Trust which shall be known as " KUMAR TRUST " and the said Trustees shall hold the said property upon the following Trusts and subject to powers, provisions and declarations hereinafter contained. If my Trustees are of the view that the said property is of a value of more than rupees one lakh the Trustees shall at their absolute discretion be entitled to set apart a sum of Rs. One lakh and/or investment of tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following Trusts and subject to powers, provisions and declarations hereinafter contained. If my Trustees are of the view that the said property is of a value of more than Rs. 2 lakhs, the Trustees shall be at their absolute discretion be entitled to set apart a sum of Rs. 2 lakhs and/or investments of that value instead of the said property and shall hold the said sum upon the Trust and subject to the powers, provisions and declarations hereinafter contained. (b) The Trustees shall receive the annual or other income arising out of or in respect of the Trust property or the investments made out of the Trust property and reimburse or pay and discharge all the costs, charges and expenses which may be incurred in or in respect of the admin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the properties remain undistributed. 4. On appeal, the learned Deputy CWT(A) held that the WTO had misdirected himself while listing out at page 3 of assessment order the reasons for holding that the three properties remained undistributed, on a wrong premise that the settlor reserved the right for distribution. According to the Dy. CWT(A) on a plain reading of the relevant portions of the Will creating the three Trusts and bequeathing the impugned properties respectively, it was manifest that the discretion for the manner of distribution was not retained by the deceased but was given to the Trustees named in the Will. After going the detailed written submissions filed before him (which have been reproduced in the order) he concluded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e second reason given by the WTO, viz., that the properties remained undistributed, the learned counsel relied upon the detailed submissions made in this regard before the Dy. CWT(A). 7. We have considered the rival submissions and perused the facts on record. It is noted that the factum and the genuineness of the Will of Late Shri Pradumansinhji is not denied/doubted by the Revenue. In the ultimate analysis, it is the content of the Will which determines the date of vesting of the legacy. It is well settled that the cardinal rule of interpretation of document is that effect should be given to the expressed intentions of the Testator which has to be gathered on reading of the entire document. In the Law of Succession, unless a condition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The legal possession therefore passed on the legatees on Trustees acknowledging the receipt of the properties. 8. The fact that the impugned properties were already distributed soon after the death is accepted by the department itself by taxing in the hands of the residuary legatees, the wealth as on 31-3-1974 which included the Estate left by the deceased minus specific legacies and the residuary legatee takes place the legacy last in order of preference. In other words, if the last legatee in the queue has received the " balance " Estate, the specific legatees ranking earlier in the queue are deemed to have received earlier their respective bequeaths from the Executors. Even in the income-tax assessment of the residuary legatee, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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