9911796707
TMI Blog2003 (11) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... - - - Dated:- 4-11-2003 - Judge(s) : R. JAYASIMHA BABU., S. R. SINGHARAVELU. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.-The assessment year is 1983-84. The question referred to us is as to whether the Appellate Tribunal was right in law in cancelling the Commissioner's order under section 263, and proceeding to hold that the status of the trust should not be taken as that of an association of persons. The assessee is a trust created under a trust deed dated September 7, 1981. In terms of the trust deed, the trustees are empowered to carry on any business and/or to engage in any trade of commercial activities which the trustees deem profitable. All the beneficiaries of the trust are minors. The busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... down in the case of N.V. Shanmugham [1971] 81 ITR 310 (SC), is what has been given statutory shape in sub-section (1A) to section 161, and that even prior to the introduction of sub-section (1A) the content of section 161 was the same, namely, that in a case where the business was carried on by the representative assessee, the beneficiaries are to be assessed as an association of persons. In the case of N.V. Shanmugham [1971] 81 ITR 310 (SC), the receivers appointed by the court had been, in a suit for dissolution, empowered by the court to carry on business for the purpose of winding up, and the income received by these receivers was sought to be assessed as that of an association of persons. The court upheld such an assessment, observin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arded as clarificatory, having regard to the express language employed in section 161(1) of the Act. The decision in the case of N.V. Shanmugham [1971] 81 ITR 310 (SC), a case arising under the Indian Income-tax Act, 1922, was based on the finding of the court that a common interest had been created among the erstwhile partners who had earlier been carrying on business voluntarily for the common benefit through the firm that they had constituted, when the court appointed receivers and empowered them to carry on business for the purpose of winding up. The order of the court was regarded as one which created the common interest and on that score, they were required to be regarded as an association of persons. The question referred is answer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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