TMI Blog2011 (11) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court), any income in respect of which a representative assessee is liable consists of, or includes, profits and gains of business, tax shall be charged on the whole of the income in respect of which such person is so liable at the maximum marginal rate. - T.C.(A). Nos. 1300 and 1301 of 2005 - - - Dated:- 15-11-2011 - P. Jyothimani, P.P.S. Janarthana Raja, JJ. Patty B. Jegannathan Senior Standing Counsel for the Appellant None for the Respondent JUDGEMENT P. Jyothimani: The Revenue is the appellant. These tax case appeals are directed against the order of the Income Tax Appellate Tribunal Madras 'B' Bench dated 3.4.2002 made in ITA Nos.2749 and 2750/Mds/1992 for the assessment years 1989-1990 and 1990-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,] receives or is entitled to receive on behalf or for the benefit of any person, such trustee or trustees" 4. By dint of the inclusion of Section 161(1A) of the Act with effect from 1.4.1985, it has been made clear that the tax is chargeable in the hands of the representative assessee to the maximum marginal rate. Section 161(1A) of the Act is as follows: "Section 161. Liability of representative assessee. (1) *** (1A) Notwithstanding anything contained in sub-section (1), where any income in respect of which the person mentioned in clause (iv) of sub-section (1) of section 160 is liable as representative assessee consists of, or includes, profits and gains of business, tax shall be charged on the whole of the income in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 164(1) treating such income as if it was the income of an association of persons or at the rate of 65 per cent, whichever was more beneficial to the Revenue. Therefore, the assessee is entitled to deduction under section 80L of the Act. In view of the foregoing discussions, we consider that the Tribunal was correct in granting relief under section 80L of the Act. Accordingly, we answer the question referred to us in the assessment years under consideration in the affirmative and against the Department." 6. After the advent of Section 161(1A) of the Act, the issue has been settled by this Court in Commissioner of Income Tax v. Manoranjitham Thanga Maligai Trust, (2003) 260 ITR 143, wherein the person referred to has been held to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith a non obstante clause under which where any income in respect of which a representative assessee is liable consists of, or includes, profits and gains of business, tax shall be charged on the whole of the income in respect of which such person is so liable at the maximum marginal rate. However, under the proviso to the said sub-section profits and gains receivable under a trust declared by any person by will exclusively for the benefit of any relative dependent on him for support and maintenance and such trust is the only trust so declared by him are excluded from the applicability of this sub-section." 9. Therefore, the legal issues decided by the precedents are in favour of the assessee, as in the case of the representative charac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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