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9 27 In view of the discussion in the above paras and submission of the appellant, I now proceed to consider the taxability provisions of "revocable transfers" provided under sections 61 to 63 of the Act. The appellant trust clams that it is a private revocable trust under the Trust Act and trust is a contributed trust set up under the trust deed as a contributory revocable trust. Though the trustees hold the assets for the benefits of the beneficiaries, the contribution to a trust should constitute a revocable transfer of assets by the contributors to the trustee. It is further noted that in a case of contributory trust such as the appellant trust by investing in units of the trust, each unit holder acts as a 'settlor' of the amount invested and concomitantly becomes a beneficiary of the trust entitled to distribution from the trust. I find that the relevant provisions of the trust deed read with the 'contribution agreement' as relied upon by the appellant constitutes instrument of trust in the eyes of law and it is this instruments of trust which defines entire relationship between the trust and beneficiaries. I further find that the contribution agreement from the unit holder indicate that not only all the beneficiaries of the trust clearly are identifiable on the date of respective subscription by the unit holders, but further the shares of each unit holders in the income of the trust is also ascertainable and determinate there from on the date of subscription by the respective unit holder as well as thereafter.

8. The AO has not verified whether the contributions made by the contributors are revocable or not. As per the trust deed and the relevant clauses of contribution agreement which empowers to revoke the contribution to such scheme and clause 15.1 has specified that it is a revocable trust. Moreover, the assessee has also submitted that the contribution agreement with United India Insurance Company specifies the rights of unit holder in respect of monies and from the analysis of the clauses of trust deed as well as contribution agreement the contributors or investors is entitled to revoke their contributions at any time during the term of scheme as per clause 4.3.3. of the Contribution Agreement. The assessee trust held the assets for the benefit of the beneficiaries. The Ld. A.R. submitted that trust unit holder had right to reassume the power directly or indirectly wholly or any part of income by two reasons that the specific provision of clause 4.3.3 of the contribution agreement entitles the unit holders to receive distributions from the scheme. The unit holders have right to retransfer either wholly or any part of income. Moreover, by reading the trust deed and contribution agreement it is a revocable trust and as per section 61 to 63 of the Act it can not be taxed in the hand of trust. The Ld. A.R. has submitted that Hon'ble Karnataka High Court in the case of Gadi 11 ITA Nos.3264/M/2012, 3179/M/2014 & 734/M/2015 M/s. DHFL Venture Capital Fund Cheluvaraya Chetty vs. CIT 150 ITR 60 wherein it is held that a transfer is deemed revocable under section 63 if it contains any provision for retransfer of whole or any part of income or asset to the transferor. As per section 160/161 of the Act it is relating to the liability of representative assessee and as per this section the trustee of a trust may be treated as representative assessee on behalf of the beneficiary under a trust and the taxes can be recovered from trustee in the manner similar to taxing the beneficiary, but the said provisions are precautionary measure to collect taxes from trustee, if it is not taxed in the hands of beneficiaries. The Ld. A.R. has relied upon the decision of Hon'ble Karnataka High Court in the following cases:

(b) "transfer"15 includes any settlement, trust, covenant, agreement or arrangement15."

10. The assessee claimed that the contributions made by investors in terms of trust deed and contribution agreements are regarded as revocable transfer under the provisions of Income Tax Act, 1961. Therefore, as per above sections it makes clear that the assessee trust is a revocable trust. We reproduce the said agreement which shows the sample of contribution agreement which reads as under:

12. We have gone through the above two agreements and from the above agreements, we find that assessee trust is formed by the settler M/s. Dewan Housing Finance Ltd. and the beneficiaries are the contributories who agree to make a contribution to the fund. The trust deed specifically empowers the unit holders of any scheme to revoke their contributions to such scheme. Clause 15.1 of the trust deed says that in the contribution agreement of the respective scheme, the contributors shall be entitled to revoke the contributions to as scheme, at any time during the term of that scheme. In accordance with the terms and conditions set out in the scheme documents of that scheme, for any reason, including but not limited to the circumstances resulting from any adverse tax consequences or any direction of any statutory authority, provided that no such revocation shall take effect unless the consent of contributors holding units of that scheme representing not less than 75% of the total contributions to that scheme, has been obtained, in this behalf pursuant to the other scheme document of that scheme read with this trust deed. The clauses of the trust deed and distribution of distributable proceeds as stated in the 14 ITA Nos.3264/M/2012, 3179/M/2014 & 734/M/2015 M/s. DHFL Venture Capital Fund above agreement, we are of the view contributors/investors shall be entitled to revoke their contribution to the scheme at any time during the term of the scheme and also entitled to determine distribution in accordance with the clause of the contribution agreement. The contributory trust, though the trustees hold the assets for the benefit of the beneficiaries, the contributions to trust constitute a revocable transfer of assets by contributors to the trust as per the section 61 & 63 of the Income Tax Act. We find that contributory trust in law by investing in the units of the trust, each unit holder becomes beneficiary of the trust entitled to distribution from the trust. As we have held that assessee trust is revocable trust, the contribution made by investor in terms of trust deed and contribution agreement is regarded as revocable transfer under the provisions of Income Tax Act, 1961. Therefore, accruing to the fund is not liable to be taxed in its hands but it is liable to be taxed in hands of contributors. We find that the decision of Hon'ble Bombay High Court in the case of CIT vs. Marsons Beneficiary Trust and others 188 ITR 224 is applicable to the case of the assessee. The facts of the said case are found to be similar to the present case of the assessee. In the said case the settler had appointed trustee to oversee business for the benefit of group of beneficiaries. The department wanted to tax the group as AOP. The Hon'ble Bombay High Court held that if it is accepted that assessee is AOP still one has to consider the applicability of section 61 to 63. Respectfully following the judgment of Hon'ble Bombay High Court, we hold that the taxability of provisions of section 61 to 63 apply to the assessee trust. We find that assessee trust is a private revocable trust and trust is contributed trust set up under the trust deed as contributory revocable trust. Though the trustees hold the assets for the benefits of beneficiaries, the contribution to a trust should constitute a revocable transfer of assets by the contributors to the trustee. The contributory trust by investing in units of trust each unit holder as a settlor of the amount invested and concomitantly becomes a beneficiary of the trust entitled to the distribution from the trust. We therefore hold that assessee instrument of trust 15 ITA Nos.3264/M/2012, 3179/M/2014 & 734/M/2015 M/s. DHFL Venture Capital Fund is a trust deed and the relation between assessee and contributions are as trust and beneficiaries. Moreover, all the unit holders of the trust are entitled to distribution from the trust. The contribution agreement is an important document and trust deed which clearly accruing to the trust has ultimately to be transferred to the beneficiary in ratio of their investments. Sections 61 to 63 clarify that when a transferor can unilaterally resume the power of over assets, the income is to be taxed in its hands only as if the transfer never happened. The clause 15.1 of the trust deed clearly mandates the contribution made by contributor can be revoked any time during the term of scheme. Therefore, we are of the view that Ld. CIT(A) is justified in his action. We also find similar capital venture found in Bangalore in the case of CIT vs. India Advantage Fund wherein the Hon'ble Karnataka High Court has considered the applicability of section 164(1) of the Income Tax Act and held that section 164(1) applies shall be deemed as being not specifically receivable on behalf or for the benefit of any one person unless the person on whose behalf or for whose benefit such income or such part thereof is receivable during the previous year is expressly stated in the order of the Court or the instrument of trust or wakf deed as the case may be and is identifiable as such order, instrument or deed. The individual shares of the persons on whose behalf or for whose benefit such income received shall be deemed to be indeterminate unless the individual shares of the persons on whose behalf or for whose benefit such income stated in the order of the court. Section 161(1) applies in the case of the trust received the income from representative assessee and the High Court has gone to the extent that real test is whether shares are determinable even when after the trust is formed or may be in future when the trust is in existence. Therefore, in this case the beneficiaries' agreement has been made and trust deed has been executed in the shares are determined. Therefore, assessee cannot be taxed.