Madras High Court
Cit vs Viners Industries on 3 December, 2002
Equivalent citations: [2003]130TAXMAN492(MAD)
JUDGMENT N.V. Balasubramanian, J.
In pursuance of the directions of this court, the Income Tax Appellate Tribunal has stated a case and referred the following question of law :
"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 should not be assessed in the status of association of persons?"
2. The assessment years involved are 1985-86 to 1989-90.
3. Learned counsel appearing for the revenue in his fairness submits that the issue raised in the common questions is covered against the revenue by the decision of this court in CIT v. Venu Suresh Sheela Trust (1998) 233 ITR 99 (Mad). We are of the view that it is a case of a Trust and the shares of the beneficiaries are specified and known and, therefore, it cannot be assessed as association of persons under the provisions of section 161 and 161(1A) of the Income Tax Act. We have also taken a similar view in T.C. Nos. 210 and 211 of 1998 [CIT v. M/s. Mecca Trust] dated 29-10-2002 holding that the assessee was not liable to be assessed in the status of association of persons. Following the said decisions, we answer the common question of law referred to us for several assessment years against the revenue and in favour of the assessee. In the circumstances of the case, there will be no order as to costs.