2003 (11) TMI 52

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....ssessment year is 1983-84. The question referred to us is as to whether the Appellate Tribunal was right in law in cancelling the Commissioner's order under section 263, and proceeding to hold that the status of the trust should not be taken as that of an association of persons. The assessee is a trust created under a trust deed dated September 7, 1981. In terms of the trust deed, the trustees ....

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....ra Balkrishna [1960] 39 ITR 546. It must be noticed here that section 161, Income-tax Act, was amended and sub-section (1A) was introduced therein by which in the case of representative assessees having income which includes profits and gains of business, tax, shall be charged on the whole of the income at the maximum marginal rate, only with effect from April 1, 1985, and that provision was not o....

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....tive assessee, the beneficiaries are to be assessed as an association of persons. In the case of N.V. Shanmugham [1971] 81 ITR 310 (SC), the receivers appointed by the court had been, in a suit for dissolution, empowered by the court to carry on business for the purpose of winding up, and the income received by these receivers was sought to be assessed as that of an association of persons. The ....

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....red from the representative assessee, in like manner and to the same extent as it would be leviable upon and recoverable from the person represented by him. That section does not contemplate the treatment of the beneficiaries of the trust which carried on business as constituting an "association of persons", in cases where the extent of interest of each of the beneficiaries is known and is determi....