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TMI Blog1985 (4) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... hus processing that the ITO would be free to invoke s. 164(1) and make an assessment on the trust itself, though at the same time beneficiaries filed their respective returns before ITOs other than N-Ward. ITO and got themselves assessed on their total income including the benefit from the above trust as summarised on pp. 15-16 for 1982-83 and position 17-18 for 1983-84. Actually assessee's impression was that as in earlier year ITO would perhaps determine only the income of the business for the purpose of enabling the ITOs assessing beneficiaries to adopt the correct share. ITO had not difficulty in giving a finding that income as per return version in correct. When it came to determination of tax on the returned income, however, ITO took ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be excluded from the assessments of beneficiaries in terms of CBDT circular dt. 24th Feb., 1967. This circular in particular cautioned in ITOs about exercising the option of assessing the trust under s. 164. We need say no more because this aspect does not arise out of the order of CIT (A) now under appeal. The departmental representative too has not made any issue out of this. Actually departmental representative's argument is that the assessment on the trust is valid though quantification of tax may not be in conformity with the view held by the Tribunal in similar cases. 3. Aggrieved by the decision of ITO the assessee filed appeal to CIT (A) who dismissed the appeal. According to CIT(A) the ratio of the McDowell Co. vs. CTO (1985) 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust in like manner and the same extent as the beneficiaries could. Even this is now not possible as the beneficiaries have been assessed directly on the income from trust and also other income. If the trustee is now assessed on the income of the beneficiaries, the same income included in the direct assessment will have to be excluded. There is no assurance or guarantee that the Department would do any such thing. Accordingly, Dr. Butani sought cancellation of the order of ITO. 5. We have examined the facts. We have examined the issue regarding liability of assessment of a specific trust as a separate unit in Trustees of Anilkumar Trust, Pune vs. ITO in ITA No. 613/PN/84 dt. 18th Feb., 1986. In our opinion, since reported in (1986) 16 ITD ..... X X X X Extracts X X X X X X X X Extracts X X X X
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