1996 (4) TMI 39 - HC - Income Tax

Assessment Year, Jurisdiction Of Settlement Commission, Penalty Proceedings, Powers Of Settlement Commission

Summary

The High Court of Madhya Pradesh ruled in favor of the assessee-trust, stating that the income should be distributed to specified beneficiaries and not taxed as an association of persons. The Tribunal found that the beneficiaries' shares were fixed, distinguishing the case from a previous ruling where beneficiaries had no right to income for 20 years. The court upheld the Tribunal's decision, concluding that the trust should not be assessed as an association of persons.