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TMI Blog1997 (12) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... defined in the Act. In a wider sense, it connotes an aggregate of property i.e., recognised by law as the subject-matter of rights and duties. It is the creation of the rules of procedure. A Hindu idol is a Juridical Person capable of holding property and of being taxed through its shebaits who are entrusted with the possession and management of its property. It is treated as minor and shebait acts on its behalf as its guardian. 5. It is sine qua non, for AOP that it must the one in which two or more persons join in a common purpose of common action. In the case of CIT v. Ibrahimji Hakimiji [1949] 8 ITR 501 (Sind), it was held that trustees form AOP but this could not make them owners. The definition of the word 'person' given in the Act under section 2(31) in enumerative. The last category of the person defined in the said section is "every artificial juridical person, not failing within any of the preceding sub-clauses". Therefore, if a person falls within any of the preceding sub-clauses, then it cannot be termed as Artificial Juridical Person. 6. I now proceed to examine the facts of the present case. The assessee is a Trust. Deed of the Trust was produced before me. The Tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; matma Trust Settlor Subhash Smt. Asha R.N. Lakho- Smt.Sushila Subhash Chand Chandra Rani tia Lakhotia Lakhotia Lakhotia Lakhotia Trustees Subhash Asha Rani R.N. Smt. Sushila Smt. Sushila &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 380 were spent during the entire year for all the purposes of the Trust. It is not known what amount assessee spent on Lord Ganesha. Similar to is the position in other trusts also. There is no evidence to show that the deities were installed at S-222, Greater Kailash or at any other place. Settlor made the trust not for the worship of NIRAKAR BRAMHA. If idol is not there in existence, how it can be construed to be a beneficiary. And when idol is not there, how property can vest in it. It is, therefore, not a case of juridical person. Assessee is a trust and trustees are holding the property. In the case of Thanti Trust v. WTO[1989] 178 ITR 1/45 Taxman 121, (Mad.), it was held that Trust is not a 'juridical person'. Taking into consideration the entire conspectus of the facts, I hold that the assesee Trust could only be assessed in the capacity of AOP. I, therefore, reverse the order of DCIT (Appeals) and restore the order of Assessing Officer on this count. 9. I now proceed to examine the second issue that whether the Trust could be subjected to the maximum marginal rate of tax. I have perused the Trust deed. A Trust according to section 3 of the Indian Trust Act, 1882 is an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson" in the second limb of that sub-section. If the intention of the legislature was that "person" in the expression "any one person' should be understood in the sense in which it is defined in the General Clauses Act, so as to include the plural, then it would not be necessary to emphasize the singleness of the person by using the singular in the first limb and the plural in the second limb. In view of this, it cannot be said that section 160(1) is attracted only in cases where beneficiaries are more than one. Even where there is a sole beneficiary of the Trust, section 164(1) would be attracted when income of the Trust or in part thereof is not specifically receivable by the trustee on behalf of or for the benefit of such sole beneficiary. In the instant case, the beneficiary of the Trust was stated to be the deity. The trustees are also required to do Dridra Narayan Seva, Bhandara, Jagaran, welfare of the poor, activity connected with the religion, etc., etc. as per the terms of the Trust Deed. The share was not allocated. It is abundantly clear from the facts that no significant amount was spent on the objects of the Trust. The money collected was utilised by the family concer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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