9911796707
TMI BlogScope of Sec.161 where trustee runs business on behalf of beneficiary.X X X X Extracts X X X X X X X X Extracts X X X X ..... tees are authorised by the settler to carry on behalf of an for the benefit of the beneficiaries was examined by the Board in consultation with the Ministry of Law. The opinion given by the Ministry of law on the subject is as follows: U/s.161 the tax shall be levied upon and recovered from the representative assessee in like manner and to the same extent as it would be leviable upon and recover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned on behalf of the persons who had a common interest created by the order of the court and were on that account an association of persons. The liability to tax depends upon the earning of profits by a unit and not upon the ultimate division of profit. Referring to the facts of the case in Indra Balakrishna (39 ITR p.546), it was observed - it was not said that any of them declined to receive the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take a view that the beneficiaries constitute an Association of persons. However we are not expressing any final view in case of trust exclusively for minors. The Supreme Court categorically held that where the beneficiaries received profits that means they have acquiesced in the continuance of the business. The course of conduct of the beneficiaries is relevant in determining who carried on the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be leviable upon and recoverable from the person represented by him. In other words the judgement of the Supreme Court in CWT Vs. Trustee of Nizam Family Trust(108 ITR p.555) may have to be followed. The position of law is explained in the MOLs opinion may kindly be brought to the knowledge of all officers working in your charge. - Circular - Trade Notice - Public Notice - Instructions - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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