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TMI Blog1986 (5) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... Jan., 1979 in terms of the trust-deed. The Trustees P.T. Gera, K.P. Gera and Smt. Nelini Gera accepted the funds for holding in trust. Trustees were authorised to use the funds in any manner which in their opinion would benefit the beneficiaries. This meant authorisation to state the funds in business having higher risk element neutralised by higher return. Till 31st March, 1981 the increase was t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the entire income of the trust is assessable as one unit. Aggrieved by this decision the assessee filed appeal before CIT(A) who dismissed the appeal. 5. On behalf of the appellant Shri Bhide contended that the past practice of assessing the beneficiaries was correct and the Department made this year is not warranted by law. Trustees carry on the business in terms of the authority vested by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in jeopardy if the beneficiaries are assessed directly. 6. The question whether the trustees cannot be assessee as one unit has already been decided in ITA No. 613 dt. 18th Feb., 1986 in the case of Trustees of Anilkumar Trust vs. ITO (1986) 18 ITD 451 (Pune) : (1980) 27 Taxes in Planning 141 (Pune). The order of CIT(A) therefore deserves to be reversed. 7. In reply Shri Welvekar admitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit of assessment. The trustees however are liable to be assessed but tax demand is to be restricted to that payable as if the trustees are assessable in like manner, and to the same extent as the Individual beneficiaries would be assessable. There is no AOP/BOI of beneficiaries. About the option being exercised, as no point about correctness of the option exercised by ITO has been conversed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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