2002 (10) TMI 805 - HC - Income Tax

Summary

The Madras High Court ruled that a trust with known and fixed beneficiaries cannot be treated as an Association of Persons for tax assessment purposes. The Income-tax Appellate Tribunal's decision was upheld, stating that beneficiaries who do not join together to earn income are not considered an Association of Persons. The court cited a similar case from the Bombay High Court to support their decision. The question of law was answered in favor of the assessee, with no costs awarded.