2008 (2) TMI 422

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....der Section 256(2) of the Income Tax Act, 1961 (in short the "Act"): "1. Whether the Tribunal was correct in the facts and in law in concurring with the order of the First Appellate Authority holding that M/s Laxmi Pd. & Sons was an association of person created in pursuance of the will left by late Laxmi Pd., when there was no specific direction in the will for the creation of any trust. 2.....

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....ovable properties and after his death, Sri Subhash Chandra and Sri Tagore Kumar will become owners of all movable and immovable properties. The will further annexes certain obligations to that ownership namely, making provision for the upbringing the family of Vijay Kumar, one of the sons of testator. However, the will says that such arrangement of upbringing his family would be discretionary as t....

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.... 4. An association of persons is not defined in the Act. Section 2(7) of the Act says that an "assessee" is a "person". 5. Section 2(31) (v) of the Act says that "person" includes "an association of persons". The explanation to Section 2(31) of the Act reads as under: "2(31) "persons" includes-- (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, ....

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....ciation of persons because of inheriting joint property by a will or such other circumstances not being voluntary would not constitute such joint legatees as association of persons. 8. In view of the above principles, we are of the opinion that the assessee cannot be said to be an association of persons because of the terms of the will under which the two legatees have inherited the assets of t....