Taxability of discretionary trust receipts in the assessee's hands confirmed under section 166, following controlling precedent.

Amounts received by an assessee from discretionary trusts were treated as taxable in the assessee's hands under section 166 of the Income-tax Act, 1961. The earlier High Court view had been reversed, and the controlling precedent required the receipt to be assessed as income in the assessee's hands for the first question referred. The issue was answered in favour of the Revenue and against the assessee.

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Issues: Whether the sum received by the assessee from discretionary trusts could be taxed in the assessee's hands under section 166 of the Income-tax Act, 1961.

Analysis: The earlier view relied upon by the High Court had been reversed, and the controlling precedent required the received amount to be treated as taxable in the hands of the assessee for the purpose of the first question referred.

Conclusion: The first question was answered in favour of the Revenue and against the assessee.

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