SATISH CHANDRA, C.J. - (1.) THE Appellate Tribunal had submitted this statement of the case and has referred five questions of law for the opinion of this court. THE reference is under the E.D. Act. It relates to the estate of late Sri Ram Mohan Das Tandon, who died on June 27, 1967. His son, Badri Vishal Tandon, filed a return under the E.D. Act. THE Asst. controller, in due course, passed an assessment order after making various adjustments. THE accountable person went up in appeal and then in further appeal to the Income-tax Appellate Tribunal. Now, three matters are in dispute on which the Tribunal had referred to us five questions of law.
(2.) THE first matter relates to the inclusions of the deceaseds shares amounting to Rs. 1,27,098 in Lala Man Mohan Das Trust. THE facts ar : Lala Man Mohan Das Tandon died somewhere prior to 1953 leaving behind his widow and five sons, the youngest of whom was Ram Mohan Das Tandon, the deceased. Lala Man Mohan Das was the treasures of the Allahabad Bank. He had expressed a desire that after his death the treasureship of the bank be carried on by his family members. On his death, Lala Man Mohan Das left certain properties which belonged to him individually. After his death, his wife and his five sons executed a declaration of trust dated May 20, 1953. THEy created a trust called "Lala Man Mohan Das Trust". THE Trust was irrevocable so as any of the sons of late Lala Man Mohan Das continued to function as treasures of Allahabad Bank. THE properties transferred to the trust were certain securities, shares in companies, cash balances in the bank, etc., totalling a net sum of Rs. 3,17,419-4-8. Clauses 6 of the deed of trust provided that the trustees agree to recognize the following members of the family of late Lala Man Mohan Das as beneficiaries of the trust whose shares in the income and profits of the trust shall be as follow : At serial No. 1 Srimati Chameli Devi (the widow of Lala Man Mohan Das) was mentioned and her shares was Rs. 500 per month. Serial No. 2 mentioned another lady of the family, Srimati Tulsa Bibi, with a share of Rs. 40 per month. At serial Nos. 3 to 7 the five sons were mentioned. At serial No. 7 was Lala Ram Mohan Das Tandon (the deceased) and his share was mentioned as "annas 2 of a rupee of the net profits". Clause 7 provided that out of the income of the trust fund Rs. 500 shall be paid every month to the said Smt. Chameli Devi and Rs. 40 per month to Smt Tulsa Bibi for their maintenance. Clauses 9 of the trust deed provided that beneficiaries other than the said Smt. Chameli Devi and Srimati Tulsa Bibi shall not be entitled to withdraw from the trust their respective share in the profits except as unde : (1) Rs. 10,000 on the marriage of any daughter or son of any of the present beneficiarie : (2) THE amount of his proportionate share out of the sum exceeding Rs. 5,00,000 in the trust fund. 2. Clause 19 of the trust deed provided that in case of death of any beneficiary, from 3 to 7 (both inclusive), his heirs directly in line of late Lala Man Mohan Das shall be entitled to receive the share of profits payable to the late, beneficiary. THE cl. 20 went on to provide that on the revocation of the trust, the assets of the trust shall be divided equally among the beneficiaries 3 to 7 (both inclusive) mentioned in para. 1 and each beneficiary will be entitled to get his shares of the assets after an adjustment of the withdrawals made by him. It appears that in order to record the withdrawals, etc., made by the various beneficiaries the trustees maintained separate accounts in the name of each of the beneficiaries. The shares of Ram Mohan Das, the deceaseds family in the trust as per the balance-sheet as on May 15, 1967, amounted to Rs. 1,27,098. This was included by the Asst. Controller in the valued of the estate of the deceaseds joint family in order to ascertain his shares in the entire estate. This inclusion was challenged by the accountable person but was confirmed in appeal as well as by the Tribunal in further appeal. learned counsel for the accountable person submitted before us that this share was not included in the deceased wealth-tax assessment and so it should have been left out of the estate duty assessment also.
(3.) THE Tribunal has foun : "THEre is no dispute or doubt that the deceaseds family has a share in the trust property. THE deceaseds share therein certainly passed on his death." The Tribunal further hel : "Since the value of the deceaseds share has to be included in the estate duty assessment, we are of the opinion that on a notional basis the familys share in the trust property as per the latest balance-sheet of the trust before the dated of his death should be taken into account." learned counsel for the accountable person submitted that the deceaseds share in the trust property was a contingent interest. It was not a beneficial interest and so it could not be included to find out of value of the estate of the deceaseds joint family in order to ascertain his share in the entire estate. learned counsel did not dispute the findings that the deceaseds family, as such, had a share in the trust property and its income. the deceased was the persons nominated who was entitled to receive the income and, after his heir who was in line with Man Mohan Das was mentioned as the one entitled to receive payment of share. The deceased had a present continuing interest to receive a share of the trust properties if and when revoked. This interest passed on his death. Such an interest could not be characterised as a contingent interest. In our opinion, the authorities below rightly added the currently available value of such an interest in the value of the estate of the deceaseds joint family with a view to ascertain his share in the entire estate. ;