2011 (11) TMI 268

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..... cts and circumstances of the case, the Tribunal was right in treating the assessee as individual and not as association of persons? and   2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the income of the trust have to be aggregated and the maximum marginal rate has to be applied on the income attributable to each beneficiary?   2. The Tribunal, in the impugned order, has held that in respect of cases covered under Section 80L of the Income Tax Act, 1961 (for brevity, "the Act"), the deductions are admissible, especially in cases where the issue relates to the discretionary trust and the shares of the beneficiaries are ascertained. Ultimately, while concurring with the findings of the .....

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..... m marginal rate:   Provided that the provisions of this sub-section shall not apply where such profits and gains are 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."   5. In fact, it was originally while considering Section 80L of the Act, in Commissioner of Income Tax v. Venu Suresh Sanjay Trust and others, (1996) 221 ITR 649, this Court while referring to a catena of decisions on this issue, including G.Murugesan and Brothers v. Commissioner of Income Tax (1973) 88 ITR 432 (SC), has held that while determining the total income of a trustee who is an individual, the individual tr .....

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..... ot association of persons, in the following words:   "That the trustee is to be assessed is evident from the language employed in that provision. The 'person' referred to therein is the person mentioned in section 160(1)(iv). The Tribunal was, therefore, in error in holding that the assessment should be on the beneficiary only and not on the trustee. The reference made in the question to a decision rendered by the Bench in the case of another trust was a decision which required the assessment to be made on the assessee even in respect of the business income, even after the introduction of section 161(1A)."   7. In view of the categoric finding rendered in the above said judgments, which is in conformity with the impugned order o .....

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