TMI Blog2014 (1) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... f income in the hands of the trust had therefore to be made in the same manner and to the same extent as it would have been made in the hands of beneficiaries - The beneficiaries were merely recipients of income from trust and had not come together for common purpose for earning income – thus, beneficiaries could not be considered as association of persons or body of individuals - assessee trust has to be assessed as an individual who will be entitled for exemption under section 10(15) of the Act – Decided in favour of Assessee. - ITA No.7874/Mum/2011 - - - Dated:- 4-6-2013 - RAJENDRA SINGH AND DR. S.T.M. PAVALAN , JJ. For the Appellant : Subhash S. Shetty. For the Respondent : Chaturbhuj Das Chatnani. ORDER:- PER : Raje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alf of the beneficiaries in capacity of trustee and representative assessee of the beneficiary. The income tax had to be levied on trustee in a like manner as taxed in hands of the beneficiary. There was only one beneficiary in this case and, therefore, income had to be taxed in the status of an individual. The Assessing Officer however did not accept the explanation given and observed that the assessee trust was neither individual nor HUF. He, therefore, rejected the claim and taxed the interest income of Rs.7.00 lacs. In appeal, CIT(A) observed that RBI relief bonds were duly appearing in balance sheet of the trust. Therefore, investment as well as income both belonged to the trust. The income thus had to be taxed in the name of trust whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption of interest income under section 10(15) of the Act. Under the said section, interest received by individual and HUF from RBI relief bonds is exempt from tax. There is no dispute in this case that interest income had been received from RBI relief bonds. The limited dispute is whether exemption under section 10(15) is available to a trust. The authorities below have held that the trust being not an individual or HUF exemption can not be allowed whereas argument of the assessee is that the trust had been created for the benefit of beneficiaries and therefore has to be assessed in the capacity of individual. We find that the same issue has already been considered by the Hon'ble High Court of Bombay in the case of Shardaben Bhagubhai Mafat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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