1990 (6) TMI 9

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.... following question of law to this court under section 256(1) of the Incometax Act, 1961 ("the Act") : "Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the income of the trust is specifically receivable for the benefit of the individuals who are determinate and known and, as such, section 164(1) of the Income-tax Act, 1961, is not attracted ....

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.... in detail in sub-clauses (a) to (d) of clause 3 of the deed of trust. In view of the said terms and conditions, the Income-tax Officer held that 95 per cent. of the income of the trust was to be accumulated for the benefit of a person not known and determinate since it was not known who would be the wife of Sri Atreya Lakhotia. He, accordingly, applied section 164 of the Income-tax Act, 1961, and....

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....on by the Finance (No. 2) Act, 1980, with effect from April 1, 1980. Explanation 1 provides as follows : "164. Charge of tax where share of beneficiaries unknown.-... Explanation 1. - For the purposes of this section, (i) any income in respect of which the persons mentioned in clause (iii) and clause (iv) of sub-section (1) of section 160 are liable as representative assessee or any part the....

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.... deed, as the case may be, and are ascertainable as such on the date of such order, instrument or deed." The provisions of section 164 of the Act were made explicit by the Explanation which was inserted with effect from April 1, 1980. In the instant case, the assessment year involved is 1981-82 and the said Explanation clearly applies to the instant case. In view of such an Explanation, the ben....