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2004 (7) TMI 53 - HC - Income Tax"Whether Tribunal was right in holding that the Assessing Officer was not correct in assessing the assessee-trust in the status of association of persons for the assessment year 1984-85?" - CIT found that the order of AO was erroneous and prejudicial to the interests of the Revenue inasmuch as AO has not assessed the trust in the status of association of persons and levied tax at the minimum marginal rate. The CIT, therefore, set aside the assessment with the direction to the Assessing Officer to levy the tax in the status of association of persons. - income which comes to the share of a beneficiary has to be assessed as if it were the income of the beneficiary, and tax has to be levied accordingly. Section 161(1) makes no distinction between the business income of a trust and any other income of a trust. Hence, all kinds of income of a trust have to be assessed under section 161(1) – revenue appeal dismissed
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