R.R. Rastogi, J.

1. THE following questions have been referred for our opinion :

" (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the provisions of the Estate Duty Act, 1953, were attracted in regard to the interest of the deceased under the trust deed as modified ?

(2) Whether, on the facts and in the circumstances of the case, the value of the life interest of the deceased on the date of death alone could be deemed to pass or the market value of those securities at the time of the death? "

2. THE facts giving rise to these questions briefly stated are that late Sri Pearey Lal Banerjee, an advocate, had created a trust for his benefit and the benefit of his sons and daughter-in-law. THE trust was in respect of Govt. securities of the face value of Rs. 10 lakhs and the Imperial Bank of India (now State Bank of India), Strand Road, Calcutta, was appointed as the trustee. THE instrument of trust was executed on October 26, 1937. THE settlor had by Clause (3) of the instrument reserved to himself a right to revoke, vary or modify all or any of the trust and powers declared by the instrument or concerning the trust funds or t