P K BANERJEE Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THIS is a reference under S. 64(1) of the ED Act, 1953. The question referred to us for our opinion is:

(2.) THE deceased, Dr. T. N. Banerjee, died on 28th July, 1966. He was possessed of some properties in the towns of Munger and Patna. In regard to some of them, he created a trust and executed a deed of trust dt. 21st March, 1958. The accountable person was Dr. P. K. Banerjee, son of the creator of the trust, Dr. T. N. Banerjee. The beneficiaries of the trust were (1) sons and daughters of the son of the creator of the trust -Dr. Prasun Kumar Banerjee, (2) sons and daughter of Basanta Kumar Banerjee and Hemanta Kumar Banerjee -nephews of the settlor -Dr. T. N. Banerjee, and (3) sons and daughters of Aditya Nath Banerjee -youngest brother of the settlor. The trustees were (1) Dr. T. N. Banerjee, (2) Dr. P. K. Banerjee, (3) Basanta Kumar Banerjee, (4) Hemanta Kumar Banerjee, and (5) Achalendra Nath Mukherjee. In terms of the deed of trust, the settlor was the first chairman of the board of trustees. The purpose and object of the trust was to make provision for the education, marriage and such other special provisions as the trustees may decide necessary for the benefit of the beneficiaries.

(3.) THE settlor shall be the first chairman of the board of trustees. The chairman shall have full powers of management of the trust estate. He shall, however, act in consultation with the others of the board of trustees, and in the matter of difference of opinion between the trustees, the decision of the chairman of the board of trustees shall be final and operative. The chairman shall nominate his succeeding chairman. If the nominee happens to be an outsider, he shall be co -opted as a member of the board of trustees. The last surviving trustees shall nominate any one to act as the trustee.