having sole beneficiary but the
issue is having settlor as sole beneficiary."
10.5.3.1 "This provision requires that the creation of Trust is
reposing ... holding that:
i. That M/s EL by becoming the settlor and the sole
beneficiary had reserved all the rights with itself to deal
with
under:
"1. Whereas in the case of the trust, settlor, contributor and beneficiaries,
all have to be independent and distinct. In the case ... defines beneficiary as
"9. Who may be beneficiary
Every person capable of holding property may be a beneficiary.
Section 7 of the Indian Trust
Arguments
1 Whereas in the case of the trust, settlor, contributor and beneficiaries, all
have to be independent and distinct In the case ... substance, it was held as not a trust since the settlor and
the beneficiaries remained the same. Observing, that as the fact situation
reproduced
hereunder for the sake of convenience:-
"a) Whether the Settlor & Beneficiary are different in present case:
The Hon'ble ITAT ... inferred that
the Settlor "Infrastructure Leasing & Financial Services Ltd.", and the
Beneficiary "IL&FS Financial Services
behalf of the benefit of the beneficiaries and since the
income of the beneficiaries was exempt from tax u/s 10(23D) , the interest received ... that, "to
constitute a valid a trust, the Settlor, the Contributor and the Beneficiary are required to
be independent". In the case
legal heirs of the settlor. The question of whether the settlor
intended the religious purpose to be the primary beneficiary subject to a charge ... favour of the legal heirs of the settlor, or whether the heirs were the primary
11
beneficiaries subject to a charge towards the continuation
administration of trust property bearing in mind the pious intention of
original settlor of such deed.
Though the creator himself nominated 7 trustees initially ... beneficiaries, not by number
of trustees and its name, as contended.
Argument thus advanced by respondents that the real intention of the
settlor
arising between the Settlor and the
Trustees or between the Trustees inter se' or
between the Trustees and the Beneficiaries
Mrs. Renu Tikamdas Tharani, Mumbai vs Dcit (It)-4(2)(1), Mumbai on 16 July
dispute arising between the
Settlor and the Trustees or between the
Trustees inter se or between the Trustees
and the Beneficiaries
