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2016 (8) TMI 321 - HC - Income TaxApplicability of section 164 Explanation 1(ii) - whether the Trust is assessable at maximum rate? - Held that:- Our attention is invited to Annexure 'B' to the statement of case i.e. the Assessment Order dated 21st March, 1983 passed in respect of the trust as an AOP. The Assessment Order determined the total income at ₹ 1.54 lakhs, while categorically holding that no demand is payable by the Trust as the income of the Trust is divided amongst the beneficiaries as per the Trust Deed. Consequently, the tax was recoverable from the beneficiaries of the Trust. Therefore, the option as provided under Section 166 of the Act was exercised by the Revenue. This option is available even in case of discretionary Trusts. Therefore, even in case the Revenue's contention is upheld on merits, it would not yet exclude the application of option in Section 166 of the Act which in this case has already been exercised. Therefore, the substantial question of law as raised for our opinion is being returned unanswered as it has now became academic in view of the decision of the Apex Court rendered in Jyotendrasinhji (1993 (4) TMI 1 - SUPREME Court ). The above decision was rendered after the making of the statement of case along with the question of law framed by the Income Tax Appellate Tribunal for our opinion.
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