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Showing contexts for: settlor beneficiary same in Commissioner Of Income-Tax vs Late Banwari Lal Agarwala. (Through ... on 3 March, 1987Matching Fragments
The matter then went to the Supreme Court.
Before I state as to what the Supreme Court held, it is pertinent to quote the material portion of the instrument of that case [1961] 41 ITR 624 (at page 625 and 626) "This Deed Witnesseth that for effecting the said desire and in consideration of the natural love and affection of the Settlor for the Beneficiary, the Settlor as the beneficial owner assigns unto the Beneficiary the right, title and interest to every dividend and sum of money which may be declared or become due and payable on account of or in respect of the said shares (not being the price or value thereof) and further hereby covenants with the Beneficiary to hand over and/or endorse over to the Beneficiary any dividend warrant or any other document of title to such dividend or sum of money as aforesaid and to instruct the said company to pay any such dividend or such sum of money to the Beneficiary to hold the same unto the Beneficiary absolutely during the term of her natural life.
Before I state as to what the Supreme Court held, it is necessary to quote a few relevant clauses of the deed in that case.
"Whereas the settlor has settled upon his minor daughter, Srimathi Meera Bai, one-fourth of his share of profits payable to him from the firm for a period of 8 years;
And whereas out of natural love and affection, the settlor is desirous of conferring upon the beneficiary a similar portion of his share of profits from the firm ".
the deed goes on to say :
"Now this indenture witnesseth as follows :
1. The settlor hereby assigns unto the beneficiary all the rights of the settlor in respect of one-fourth of his share of profits in the firm (but not the losses) payable to him during a period of eight years commencing from the date hereof to be taken and enjoyed by the beneficiary in absolute and exclusive right.
2. The settlor shall not have any manner of right or interest in the said one-fourth share hereby settled and the right to receive from the firm one-fourth of the settlors share during the said period of eight years shall exclusively vest in the beneficiary.