2001 (10) TMI 38

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..... on, providing answers to others, is unnecessary. The assessment years are 1976-77 to 1980-81. The assessee was a partner of a firm, Thirumagal and Company in Tiruppur. He had 65 per cent. share in the firm. On March 5, 1976, he created a trust, "Sukumar Enterprises" by a registered document for the benefit of ten beneficiaries of whom nine were minors. The assessee's share in that firm was constit .....

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..... it was stated, was to take effect from the date of the principal deed of the trust. The Assessing Officer on these facts took the view that the trust itself was void and income from the share that had been held in the firm by the assessee prior to the constitution of the trust was to be assessed in his hands. The appellate authority, however, upheld the validity of the trust and the Tribunal affir .....

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..... he trustee being a partner, and the trust later taking over the business of the dissolved firm and continuing it as the proprietary business of the trust. The Tribunal, was, therefore, right in holding that the share income from the firm could not be assessed in the hands of the assessee personally. It follows that the share income from the business of the firm is the income of the trust and not t .....

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