2005 (7) TMI 88

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er section 256(1) of the Income-tax Act, 1961, made by the Income-tax Appellate Tribunal ("the Tribunal" for short). The question referred by the Tribunal is arising out of its order passed in I.T.A. No. 3053 (Bom) of 1985 for the assessment year 1982-83. The same reads as under: "Whether, on the facts and in the circumstances of the case, the assessee-trust was a non-discretionary trust for th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssed the resolution on June 28, 1980, resolving to pay a sum of Rs. 20,000 to the beneficiaries in the ratio of 50 : 50. They have resolved that the income of the trust and the balance in surplus reserve fund after paying the amount as mentioned hereinabove be held on behalf of the beneficiaries, viz., Ms. Sonal Bipin Kothari and Master Amit Bipin Kothari, in the ratio of 50 : 50. On the aforesaid....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....said order of the Income-tax Officer, the assessee preferred an appeal before the Appellate Assistant Commissioner ("the AAC" for short), who was pleased to allow the appeal filed by the assessee, accepting the contention of the assessee. The Revenue being aggrieved by the aforesaid order of the Appellate Assistant Commissioner, carried the matter in appeal before the Tribunal. For the reasons rec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e beneficiaries were defined though initially the trust was a discretionary trust, i.e., up to March 31, 1980. But after having defined the specific shares of each beneficiary, the definite trust came into existence. In that view of the matter, the view taken by the Tribunal is in consonance with the evidence available on record. In this view of the matter, the trust has to be held to be a non-....