CHHAGANLAL BAID Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This reference arises out of the assessments made for the assessment years 1958-59, 1959-60, 1960-61 and 1961-62 for Which the corresponding accounting periods were 2014 R. N. (9th April, 1957, to 28th March, 1958), 2015 R.N. (29th March, 1958, to 16th April, 1959), 2016 R. N. (17th April, 1959, to 4th April, 1960) and 2017 R. N. (5th April, 1960, to 25th March, 1961), respectively. The assessee, Sri Chhaganlal Baid, has been assessed for these years in the status of an individual. The assessee is the owner of premises, No. 91, Harrison Road, and No. 6, Sambhu Chatterjee Street, Calcutta, both the holding numbers denote one property which is a cinema house and which has been leased out by the assessee. The rent reserved under the lease is Rs. 4,500 per month or Rs. 54,000 for the whole year. In January, 1958, the assessee had six sons who were as follows:

(2.) By four several identical deeds of trust, all dated and executed on the 15th January, 1958, the assessee transferred unto his two major sons Kharag Singh Baid and Bardhaman Baid, 1/6th part of the share of furniture, goods, chattels, effects and machinery in and upon the said premises as mentioned in the said deeds for each of his four minor sons. The trustees were directed to collect the rents, issues and profits of the trust property and, in the first instance, to pay all rates and taxes, land revenue, collection charges, cost and expenses of repairs and maintenance of the property, legal expenses for collection of rents and all other outgoings whatsoever concerning the same and to hold the balance of the net income of the trust property in trust for the benefit and absolute use of each of his four sons. The trust deed which has been annexed in the paper book is an incorrect one. By consent of the parties a copy of the correct trust deed has been exhibited in this case. Clause (2) of the said trust deed provides as follows:

(3.) Clause (4) of the said trust deed is as follows :