Judgment

HIDAYATULLAH, J. : This judgment governs the disposal of Civil Appeals Nos. 134 to 137 of 1959. They have been filed by four assesses with special leave, and arise out of similar facts, and it is not necessary to refer to more than one case to consider the point in question.

2. The assessment year under consideration is 1952-53, and the previous year, the Calendar year, 1951. In that year, Mr. Tulsidas Kilachand, one of the four appellants, made a declaration of trust in favour of his wife, a portion of which may be quoted here :

"......... I, Tulsidas Kilachand ........ hereby declare that I hold 244 shares of Kesar Corporation Ltd. and 120 shares of Kilachand Devchand & Co., Ltd ............... upon trust to pay the income thereof to my wife Vimal for a period of seven years from the date hereof or her death (whichever event may be earlier) and I hereby declare that this trust shall not be revocable."

In the year of account, a sum of Rs. 30,404 was received as dividend income on those shares, and the assessee contended that this income, after being grossed up, was not liable to be included in his total income, in view of the third proviso to S. 16(1)(c) of the Indian Income-