2008 (2) TMI 640

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....the beneficiary. However, on becoming major on November 13, 1984, the sole beneficiary revoked the trust and took over the assets and business of the trust and started carrying on business as the proprietor, with effect from April 1, 1985. Relying on clause 2 of the trust deed, the Assessing Officer held that the trust is continuing business and consequently the respondent was assessed as a trust, Even though the beneficiary was also assessed in his individual capacity on the same income, the respondent assessee filed appeal which was allowed by the Commissioner of Income-tax (Appeals) and the Tribunal on second appeal, confirmed it. It is against the order of the Tribunal, that the Department has filed these appeals for the assess-ment yea....

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....arned senior counsel has relied on the decision of the Bombay High Court reported in Ramabai Govind v. Raghunath Vasudeo, AIR 1952 Bom 106 wherein the Bombay High Court held as follows (page 112) :   "The legal ownership which vests in the trustee is for the purposes of the trust and the administration of the provisions of the trust. Because, the beneficiary, until the trusts are carried out is not entitled to deal with the property, the trustee is the person who is empowered to deal with the same, but he can only deal with it in accordance with the provisions of the deed of trust."   5. In response to this, learned counsel for the respondent relied on the decision of the Calcutta High Court in Raja Baldeodas Birla Santatiko....