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3. It is now necessary to state material facts relating to formation of the assessee-trust and other trusts who have been mentioned as beneficiaries of the assessee-trust.

3.1 On or about 9-12-1979 a discretionary trust was created in the name of Jayesh Hargovandas and Rakesh Karsanbhai Oral Discretionary Trust by Shri Manilal Kesurbhai Patel by settling Rs. 50 on the trustees. The beneficiaries of this discretionary trust were three minor children of the family. On 28-12-1979 another oral discretionary trust was created by Shri Pramod Kanjibhai Patel by settling Rs. 500 on the trustees. There were two beneficiaries of this oral discretionary trust created on 28-12-1979 one of which was oral discretionary trust mentioned above viz. Jayesh Hargovandas and Rakesh Karsanbhai Oral Discretionary Family Trust and the other was Sanjay Hargovandas and Rakesh Karsanbhai Oral Discretionary Family Trust. This second Oral Discretionary Family Trust had been created in the same manner as the first oral discretionary trust on or about 9-12-1979 and there were three beneficiaries in said trust who were minors named Rakesh K. Patel, Hitesh J. Patel and Jayesh H. Patel.

3.2 In similar manner the following oral dicretionary trusts were created on or about 28-12-1979. Their names are as under :

(1) Rakesh Karsanbhai Oral Discretionary Family Trust.

(2) R.K. Oral Discretionary Family Trust.

(3) Rakesh K. Patel Oral Discretionary Family Trust.

(4) Panita Rakesh Oral Discretionary Family Trust.

(5) Punita & Karsanbhai Oral Discretionary Family Trust.

(6) Piyush J. Oral Discretionary Family Trust (7) Piyush Joitaram Patel Oral Discretionary Family Trust.

(8) Piyush & Pushpaben Oral Discretionary Family Trust.

4.1 As far as first category is concerned, there are seven individuals. Six of these individuals were partners in firm of Neo Detergent. The seventh individual is a minor who had been admitted to the benefit of said partnership. As far as Oral Discretionary Trusts are concerned they are Oral Trusts created on or about 28-12-1979 mentioned above. Each of these trusts, as already stated, has two beneficiaries and those two beneficiaries are by themselves Oral Discretionary Trusts and beneficiaries of the subsequently mentioned Oral Trusts are three individuals. As far as third category is concerned, it consists one Oral Specific Trust known as V.G. Zala Oral Specific Family Trust of which there are three beneficiaries.

11. We shall first deal with that part of the income, which according to the assessee, was liable to be allocated to 11 Oral Discretionary Trusts mentioned at Sr. Nos. 8 to 18 in the First Schedule of the Trust deed in specified ratio.

11.1 We have already stated the facts regarding formation of these 11 Oral Discretionary Trusts which may be described as Oral Trusts of first line. As already stated, they were formed on or about 28-12-1979 about three days before the formation of the assessee-trust. The beneficiaries of each of these 11 Oral Discretionary Trusts of first line are two Oral Discretionary Trusts which maybe described as Oral Discretionary Trusts of second line. Each of these two Oral Discretionary Trusts of second line has three beneficiaries who are individuals. Thus, there are 22 Oral Discretionary Trusts of second line and their beneficiaries are 15 individuals who have been grouped in permutations and combinations of three each. Out of these 15 individuals 11 are minors while 4 are major. This is clear from the chart given by the assessee at pages 144 to 147 of the paper book. Out of these 4 major persons two viz. Joitaram Kacharabhai and Karsanbhai Khodidas are trustees of the assessee trust.