( 1 ) AMARENDRA Nath Chowdhury, since deceased, was the original assessee in these proceedings. At his instance, this court under Section 256 (2) of the I. T. Act, 1961, directed the Tribunal to draw up a statement of case and refer the following questions of law to this court :"1. Whether, on the facts and in the circumstances of the case, Section 64 (iii) of the Income-tax Act, 1961, applies ? 2. Whether, on the facts and in the circumstances of the case, the entire income from the assets transferred by Amarendra Nath Chowdhury to Jatindra Nath Chowdhury, since deceased, is includible in the income of Amarendra under Section 64 (iii) of the Income-tax Act, 1961 ?"

( 2 ) THE facts found and/or admitted herein are of short compass. The assessee had executed a deed of trust conveying certain stocks and debentures as well as interest in some landed property valued in aggregate at Rs. 4,98,000 to his brother, J. N. Chowdhury, who was directed to hold the same in trust for the benefit of the wife and two daughters of the said J. N. Chowdhury. On the same day, J. N. Chowdhury executed a similar trust in respect of assets and properties of the same nature and value as conveyed i