https://www.taxtmi.com/caselaws?id=17139 The Supreme Court held that the Revenue has the option to assess and recover tax from either the trustees or the beneficiaries of a discretionary trust. Consequently, the distributions received by the assessee from discretionary trusts were assessable in the hands of the assessee. However, the sum received from the trusts, paid out of dividends eligible for deduction under section 80K, was exempt from tax as it retained its character and eligibility for deduction when passed on to the beneficiaries. The court ruled in favor of the assessee on both issues, affirming the eligibility for deduction under section 80K. en-us Wed, 26 Feb 1997 00:00:00 +0530 Tue, 15 Sep 2009 13:46:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17139 The Supreme Court held that the Revenue has the option to assess and recover tax from either the trustees or the beneficiaries of a discretionary trust. Consequently, the distributions received by the assessee from discretionary trusts were assessable in the hands of the assessee. However, the sum received from the trusts, paid out of dividends eligible for deduction under section 80K, was exempt from tax as it retained its character and eligibility for deduction when passed on to the beneficiaries. The court ruled in favor of the assessee on both issues, affirming the eligibility for deduction under section 80K. Case-Laws Income Tax Wed, 26 Feb 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17139