9911796707
TMI Blog2002 (11) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... - - - - Dated:- 19-11-2002 - Judge(s) : N. V. BALASUBRAMANIAN., K. RAVIRAJA PANDIAN. JUDGMENT The Judgment of the Court was delivered by N.V.BALASUBRAMANIAN J.-The Income-tax Appellate Tribunal has stated a case under section 256(2) of the Income-tax Act, 1961, and referred the following question of law in relation to the assessment of the assessee for the assessment year 1985-86 at the instance of the Revenue: "1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the assessee's share of income of the private family trust cannot be taken into account for rate purposes under section 86(v) of the Income-tax Act?" The assessee is an individual and the assessment year involved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard Mrs. Pushya Sitaraman, learned senior standing counsel (Income-tax) and Mr. V. Ramachandran, learned senior counsel for the assessee. The question lies in a very narrow compass and it is not necessary to go into the large question raised by learned senior standing counsel that the share income received by the assessee is his income and is liable to be included under section 5 of the Act. The question is whether the share income received by the beneficiary is liable to be included for determining the rate purposes in the individual assessment of the beneficiary. There is no dispute that the trustees were assessed in terms of the provisions under section 161(1A) of the Act read with section 164 of the Act and the tax was levied at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 86(v) of the Act inapplicable. Therefore, viewing the matter from any angle, the assessee not being a member of association of persons or on the ground that the representative assessee was already assessed at the maximum marginal rate, the share of benefit received by the assessee from the trust is not liable to be included even for rate purposes under section 86 of the Act. Though, learned senior standing counsel (Income-tax) referred to section 5 of the Act and submitted that under section 5 the share of benefit received by the assessee is liable to be included as the income of the assessee it is not necessary to consider that aspect. Section 86(v) clearly excludes the same even for rate purposes. Further section 5 is also subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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