Taxation of alternate investment funds: trustees as representative assessee taxed at maximum marginal rate when beneficiaries unnamed. Where a trust deed does not name investors or specify beneficial interests, the entire income of an Alternative Investment Fund formed as a non-charitable trust is taxable in the hands of the trustees as Representative Assessee at the Maximum Marginal Rate, and corresponding proceedings need not be pursued against contributors. If beneficiaries and their interests are expressly stated, tax on the fund's whole income, including business profits, is leviable upon the trustees in their representative capacity under the statute.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxation of alternate investment funds: trustees as representative assessee taxed at maximum marginal rate when beneficiaries unnamed.
Where a trust deed does not name investors or specify beneficial interests, the entire income of an Alternative Investment Fund formed as a non-charitable trust is taxable in the hands of the trustees as Representative Assessee at the Maximum Marginal Rate, and corresponding proceedings need not be pursued against contributors. If beneficiaries and their interests are expressly stated, tax on the fund's whole income, including business profits, is leviable upon the trustees in their representative capacity under the statute.
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