TaxTMI 
TaxTMI 
1996 (2) TMI 23
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Department, the Tribunal referred the following common question of law, for the opinion of this court, under section 256(1) of the Income-tax Act, 1961, relating to the assessment years 1973-74 to 1975-76, in respect of three assessees : "Whether, on the facts and in the circumstances of the case, the assessee, which is a private trust, with beneficiaries, whose shares are indeterminate, is eli....
X X X X Extracts X X X X
X X X X Extracts X X X X
....u undivided family, the assessee is not eligible for the relief. The Income-tax Officer relied upon section 164 which specifically stipulated that where the shares of the beneficiaries are not definite, the tax has to be charged "as if the relevant income or part of the relevant income were the total income of an association of persons, or at the rate of 65 per cent., whichever course would be mor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n individual in his representative capacity. The fact that in these cases, the beneficiaries are groups of individuals does not mean that the liability of the assessee is of an association of persons. It was held that the determination of total income, therefore, took into consideration the deduction provided under section 80L as well. Accordingly, the orders passed by the Appellate Assistant Comm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Act. On the income so computed the tax has to be charged in view of the provisions contained in section 164(1) treating such income as if it was the income of an association of persons or at the rate of 65 per cent., whichever was more beneficial to the Revenue. Therefore, the assessee is entitled to deduction under section 80L of the Act." In view of the foregoing decision, in the present case....