Beneficiary Taxed on Trust Withdrawals' Income Component; Settlor Must Disclose Previously Undisclosed Investments.

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....Taxability of withdrawals from private discretionary trust - So far as the beneficiary is concerned, once the source of funds received by beneficiary is explained, taxation could possibly be confined only to the income component - but the settlor has to explain the investments also, which were not accounted for in his books of accounts or disclosed earlier, detected during the search operations....