Judgment

Bharucha, J.-These appeals are directed against the judgment and order of a Division Bench of the High Court of Kerala. The High Court answered in the negative and in favour of the Revenue the following question:

“Whether on the facts and in the circumstances of the case the Tribunal was justified in holding that a valid trust came into exist­ence in pursuance of the document dated 17.8.1971 and whether the Tribunal was justified in holding that the assessment for the years 1973-74 and 1974-75 on the trustees had to be made in accordance with the provisions of Section 161 of the Income Tax Act 1961?”

The question aforementioned relates to the Assessment Years 1973-74 and 1974-75. (Similar question for subsequent years were answered similarly and are the subject matter of the connected appeals).

2. The facts, briefly stated, are that a trust deed was executed on 17th August, 1971. It records this :

“.......And whereas the beneficiaries, viz., Mary Varghese on behalf of her minor daughters Laizamma Var­ghese and Rasalin Varghese...... has transferred and assigned to the trustees upon trust the sums referred to in clause 17 against their respective names...... Whereas T.J. Joseph