9911796707
TMI Blog2005 (3) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... handigarh bench, Chandigarh (hereinafter referred to as "the Tribunal"), has referred under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), the following question of law for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the provisions of proviso (ii) to sub-section (1) of section 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviso (ii) of the Act, the interest income was assessable in the hands of the trust. Accordingly, the said amount was included in the total income of the trust and subjected to tax at the maximum marginal rate taking the status of the assessee-trust as association of persons. Aggrieved, the assessee-trust carried the matter in appeal to the Appellate Assistant Commissioner of Income-tax ("the AA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal is perverse inasmuch as the Assessing Officer had found as a fact that by virtue of the will, the deceased, Smt. Vidya Wati had created four trusts and, therefore, the share of the beneficiary remained indeterminate, attracting the provisions of section 164(1) of the Act. We are unable to agree with learned counsel for the Revenue for more than one reason. It is trite that where a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e single person for the purpose of section 164(1) of the Act did not arise. In view of the above, we are in complete agreement with the view taken by the Tribunal that the provisions of section 164(1), proviso (ii), of the Act were not attracted in the instant case. Accordingly, we answer the question referred in the affirmative, i.e., in favour of the assessee and against the Revenue. The refe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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