TMI Blog1989 (3) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1964-65, the Income-tax Officer found that a sum of ₹ 10,880 had been debited to the interest account maintained in the books of the Ahmedabad trust as interest paid to the Harivallabhdas Kalidas Estate Account. Upon further scrutiny, he discovered that substantial debits totalling ₹ 2,19,804 included withdrawals from the estate account by the Ahmedabad trust on account of the personal expenses of the assessee. After taking into consideration earlier withdrawals from the estate account by the Ahmedabad trust for the purpose of investment and making adjustments for deposits during the year, the Income-tax Officer concluded that the net withdrawals from the estate account for personal expenditure were ₹ 3,10,806. He held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and in the circumstances of the case, the Tribunal was right in not holding that out of the interest payment of ₹ 10,880, ₹ 6,199 was not an admissible deduction against the income from other sources ? (2) Whether, on the facts and in the circumstances of the case, the income includible in the total income of the assessee is income determinable as per provisions of the Income-tax Act, 1961, in the case of the trust or the income receivable by the assessee from the said trust ? The question referred to the High Court for assessment year 1966-67 was [1976] 102 ITR 356, 359): Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that out of the interest payment of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the High Court for the assessment year 1964-65, it seems to us clear that what is assessable in the hands of the assessee must be the income of the trust received by it on behalf of the assessee. It is apparent from section 161 (1) of the Incometax Act, 1961, that a representative assessee, that is to say a trustee, as regards the income in respect of which he is a representative assessee, is subject to the same duties, responsibilities and liabilities as if the income were income received by or accruing to or in favour of him beneficially, and he is liable to assessment in his own name in respect of that income ; but any such assessment is deemed to be made upon him in his representative capacity only, and the tax is levied upon and reco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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