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2020 (10) TMI 1095 - HC - Income TaxAssessment of trust - Determinate Trust or indeterminate Trust - Whether Tribunal was right in law in holding that the assessee as a discretionary trust ignoring the fact that the beneficiaries and their share of interest in the trust are determinable at all points of time? - Tribunal held that the provisions of Section 160 is not applicable and the assessee is liable to be taxed on the entire income? - as per tribunal entire receipt is taxable in the hands of assessee even though the income and expenditure have been distributed and intimated to the beneficiaries? HELD THAT:- In the light of the decision of this Court in the case of CIT vs. M/s.TVS Shriram Growth Fund [2020 (10) TMI 665 - MADRAS HIGH COURT] section 164 of the Act gets attracts only when the shares of the beneficiaries are unknown, which is manifest from the marginal heading of that Section itself, viz., Charge of tax where the share of the beneficiaries unknown. That Section comes into play only where any income or any part thereof is not specifically receivable on behalf of or for the benefit of any one person or where the individual shares of the persons on whose behalf or for whose benefit such income or such part thereof is receivable are indeterminate or unknown, and in such case, the relevant income, or part of the relevant income shall be charged at the maximum marginal rate. In order to attract Section 164(1) of the Act, the beneficiaries on whose benefit, such income or such part thereof is receivable are indeterminate and unknown. Thus substantial questions of law are to be answered in favour of the assessee.
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