1984 (2) TMI 143

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....ere, however, the four grandsons of Smt. Shah and the sons of the two trustees named above. Among other clauses there was a clause in the trust deed that the reustees were to divide the income of the trust fund among the beneficiaries in equal shares. 3. The ITO, while making the assessment of the trust in the status of AOP, did not raise any demand but distributed the income so computed among the beneficiaries in equal was of the opinion that the assessment so made by the ITO were erroneous and prejudicial to the interests of revenue inasmuch as the assessee trust had not been taxed as a unit. He therefore, initiated proceedings under s. 263 of the Act and issued a show cause notice in reply to which it was contended on behalf of the as....

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....Supreme Court reported in 1977 CTR (SC) : (1977) 108 ITR 556 (SC), the decision reported in K. T. Doctor vs. CIT (1980) 15 CTR (Guj) 43 : (1980) 124 ITR 501 (Guj) and the decision of the Madhya Pradesh High Court in the case of Karelal Kundanlal Trust reported in 16 (1984) Taxman 146 (MP). The ld. Departmental Representative, on the other hand, strongly supported the order of the CIT and relied on the decisions reported in N. V. Shanmughams & Co. vs. CIT (1917) 81 ITR 310 (SC). Deccan Wine & Gen. Stores vs. CIT (1977) 106 ITR 111 (AP), CIT vs. Harivadan Tribhuvandas (1977) 106 ITR 494 (Guj), Gopal Chand Sen vs. ITO & Ors. (1917) 109 ITR 820 (Cal) and Meera & Co. vs. CIT (1979) 8 CTR (P&L) 28 : (1979) 120 ITR 564 (P&L). 5. Having heard th....