1986 (5) TMI 94

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or asst. yrs. 1984-85. 2. Shri M.P. Gera settled Rs. 3,000 on trust on 31st Jan., 1979 in terms of the trust-deed. The Trustees P.T. Gera, K.P. Gera and Smt. Nelini Gera accepted the funds for holding in trust. Trustees were authorised to use the funds in any manner which in their opinion would benefit the beneficiaries. This meant authorisation to state the funds in business having higher risk....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eld that the business is really carried on by the beneficiaries as AOP and therefore the entire income of the trust is assessable as one unit. Aggrieved by this decision the assessee filed appeal before CIT(A) who dismissed the appeal. 5. On behalf of the appellant Shri Bhide contended that the past practice of assessing the beneficiaries was correct and the Department made this year is not war....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e direct assessment of beneficiary. The ITO has also to see if the Revenue would be in jeopardy if the beneficiaries are assessed directly. 6. The question whether the trustees cannot be assessee as one unit has already been decided in ITA No. 613 dt. 18th Feb., 1986 in the case of Trustees of Anilkumar Trust vs. ITO (1986) 18 ITD 451 (Pune) : (1980) 27 Taxes in Planning 141 (Pune). The order o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....1986) 18 ITD 451 Pune. Accordingly we hold that the trustees can not be assessed as a unit of assessment. The trustees however are liable to be assessed but tax demand is to be restricted to that payable as if the trustees are assessable in like manner, and to the same extent as the Individual beneficiaries would be assessable. There is no AOP/BOI of beneficiaries. About the option being exercised....