M. HIDAYATULLAH, J. L. KAPUR, J. C. SHAH, J.

( 1 ) THIS judgment governs the disposal of Civil Appeals Nos. 134 to 137 of 1959. They have been filed by four assessees 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 and Co. Ltd. upon trust to pay the income thereof to my wife Vimla 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.

( 3 ) IN the year of account a sum of Rs. 30 404 was received as dividend Income of 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 sec. 16 (1) (c) of the Indian Income-tax Act

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