Representative assessment under section 161: trustee taxed in the status of beneficiaries when carrying on business for their common interest. Section 161 requires that tax on a representative assessee be levied and recovered in like manner and to the same extent as it would be from the person represented; when a trustee is authorised by the settlor to carry on business for beneficiaries, the beneficiaries' common interest and conduct can render them an association of persons, making the income chargeable as that unit's income and requiring the trustee to be assessed in the beneficiaries' status, with special caveats for trusts exclusively for minors.
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.
Representative assessment under section 161: trustee taxed in the status of beneficiaries when carrying on business for their common interest.
Section 161 requires that tax on a representative assessee be levied and recovered in like manner and to the same extent as it would be from the person represented; when a trustee is authorised by the settlor to carry on business for beneficiaries, the beneficiaries' common interest and conduct can render them an association of persons, making the income chargeable as that unit's income and requiring the trustee to be assessed in the beneficiaries' status, with special caveats for trusts exclusively for minors.
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