Law:

Section:

Section 22, proviso, of the Estate Duty Act, 1953 - Property held by deceased as trustee - T, deceased, who was one of trustees of a trust created by him, was also chairman of board of trustees - Trust deed contained a clause that all trustees would have right of residence in certain trust properties free of cost - Whether in view of fact that T filled two characters, one as chairman and other as trustee and, thus, he was also entitled to reside in trust property and, therefore, trust properties to extent of share of deceased were includible in estate of deceased - Held, yes Facts The deceased T died on 28-7-1966. In regard to certain properties, a trust had been created on 21-3-1958 consisting of five trustees including T.T was the chairman of the board of trustees entrusted with full powers of management of the trust estate. Clause 10 of the trust deed stated that the trustees, if they so desire, could reside in any portion of the building which were the items of properties of the trust estate free of any payment of rent with the approval of the chairman of the board of trustees. The accountable person submitted that the deceased as chairman did not reserve to himself any right of residence in the trust properties. He placed reliance upon clause 10 of the deed and contended that it only empowered the right of residence on the trustees. but not on the chairman and, therefore, T, the chairman, had no right of residence and, therefore, these properties could not be taken as passing on his death. On reference : Held In the present case, clause 10 conferred the right on all the trustees to reside in the trust properties. The chairman was none else than one of the trustees, he, thus, filled two characters - one as trustee and another as chairman of the board of trustees. He was chairman only by virtue of being a trustee. Therefore, all the rights of the trustees were vested in him. In view of the matter, the deceased had the right of residence in the trust properties. Therefore, the trust properties to the extent of the share of the deceased were legally includible in the estate of the deceased. K.N. Jain for the Applicant. B.P. Rajgarhia and S.K Sharan for the…

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