2002 (9) TMI 47

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..... red at the instance of the Revenue is, "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the income of the trust carrying on business should be assessed only in the hands of the beneficiaries and not in the status of an association of persons as per the provisions of section 161(1A) of the Income-tax Act, 1961?" The assessment ye .....

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..... effect from April 1, 1985, was in the statute book and was required to be taken note of while making the assessment for these two years. That sub-section (1A) of section 161 reads thus: "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, .....

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..... 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 a .....

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