TMI Blog2004 (7) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Revenue inasmuch as AO has not assessed the trust in the status of association of persons and levied tax at the minimum marginal rate. The CIT, therefore, set aside the assessment with the direction to the Assessing Officer to levy the tax in the status of association of persons. - income which comes to the share of a beneficiary has to be assessed as if it were the income of the beneficiary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n assessing the assessee-trust in the status of association of persons for the assessment year 1984-85?" In brief, the assessment of the assessee-trust for the assessment year 1984-85 was originally completed under section 143(1) determining the total income at Rs. 1,99,940. The Commissioner of Income-tax, on a perusal of the records, found that the order of the Assessing Officer was erroneous a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essed only in the hands of the beneficiaries individually and not in the hands of the trustees, as an association of persons (AOP). Aggrieved by the order of the Commissioner of Income-tax (Appeals), the Revenue filed an appeal before the Income-tax Appellate Tribunal, Chennai Bench. The Appellate Tribunal following its own order, reference to which has been made in the order of the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no distinction between the business income of a trust and any other income of a trust. Hence, all kinds of income of a trust have to be assessed under section 161(1). Trustees who are authorised to carry on business under the terms of a deed of trust are not in the same position as receivers. An association of persons as used in section 3 of the Income-tax Act, means an association in which two ..... X X X X Extracts X X X X X X X X Extracts X X X X
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