PANCHANAN DEY DECD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is a reference under Section 256(1) of the I.T. Act, 1961. The statement of the case relates to the assessment years 1962-63 to 1964-65 and 1966-67. The relevant accounting years are calendar years 1961, 1962, 1963 and 1965 respectively.

(2.) The assessee was the owner of a building being premises 6, Dr. Kartick Bose Lane, Calcutta. On October 6, 1959, by a deed (hereinafter referred to as the "debutter trust deed") the assessee transferred lot ' A ' of this property to his wife, Smt. Durga Sundari Dey, as the trustee of the three deities mentioned therein and upon trusts specified therein. It, inter alia, provides that after meeting the expenses speci6ed therein out of the income of the debutter property, if there remains any unspent balance of the income, such balance shall be paid to the shebaits as her or their remuneration in equal shares for looking after the worship and for doing the acts and deeds mentioned therein.

(3.) On the same date the assessee also executed another deed (hereinafter referred to as the "family trust deed"), transferring lot 'B' of this property to his wife as the sole trustee for the purposes mentioned therein. This deed, inter alia, provides that the trustee shall collect the rents of lot 'B' of this property and out of such collections, after meeting the expenses mentioned therein, shall appropriate the balance of the income during her lifetime as the sole trustee and after her death the balance of the income shall be appropriated by her male heirs : The aforesaid two deeds also provide as follows :