Judgement

R. S. PATHAK, J. :- These appeals have been preferred by the Revenue against the common judgment of the High Court of Andhra Pradesh answering the following questions in favour of the assessee :

" (1) Whether, on the facts and in the circumstances of the case, the incomes arising from the Reserve Fund and the Expenses Account of the Nizams Family Trust Deed dated 10-5-1950 can be aggregated in a single assessment for each of the assessment years 1960-61 to 1965-66?

(2) If the answer to the above question is in the affirmative, whether the assessments made under S. 148 of the Act for the assessment years 1960-61 and 1961-62 were legal and valid?"

2. By a Deed of Trust dated May 10, 1950 the Nizam of Hyderabad created a Family Trust. A corpus of nine crores in Government securities was transferred to the trustees under that Deed. The corpus was notionally divided into 175 equal units. Five units were to constitute a fund called the Reserve Fund, and 31/2 units were to constitute the "Family Trust Expenses Account". The remaining 1661/2 units were allotted to the relatives mentioned in the Schedule in the manner provided therein, the number of units allocated to each individual