The judgment of the court was delivered by

GROVERJ.--This is an appeal by special leave from a judgment of the Calcutta High Court answering the following question of law referred to it against the assessee and in favour of the revenue:

"Whether, on the facts and in the circumstances of the case, the entire or any part of the income from the house properties concerned could be included in the total income of the assessee by virtue of the provisions of section 16(1)(c) of the Income-tax Act, 1922, read with the first proviso thereto ?"

The assessee was assessed in the status of an individual. He derived income from house properties and from the business of a registered partnership firm H. Ganguly & Co. He had six houses one of which was 24, Mohanlal Street, Calcutta, and the other at Jangambari in the city of Banaras. On March 19, 1953, the assessee created a trust in respect of these two houses. It was provided in the trust deed that the trustees shall pay a sum of Rs. 200 per month to the settlor for life for his own absolute use and benefit out of the income of the trust estate remaining after payment of taxes, rents, etc. In other words, he himself was one of the beneficiaries.

The Income-tax Officer held that the income from the aforesaid two properties was assessable in the hands of the assessee inasmuch as he had retained a portion of the income from the trust properties for himself. The trust had, therefore, become revocable under the provisions of section 16(1)(c) of the Income-tax Act, 1922, hereinafter called "the Act". The Appellate Assistant Commissioner on appeal affirmed the view taken by the Income-tax Officer. When the matter