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TMI Blog1996 (2) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... K. A. THANIKKACHALAM J.--At the instance of the Department, the Tribunal referred the following common question of law, for the opinion of this court, under section 256(1) of the Income-tax Act, 1961, relating to the assessment years 1973-74 to 1975-76, in respect of three assessees : "Whether, on the facts and in the circumstances of the case, the assessee, which is a private trust, with bene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 80L(1)(c) and is not an individual or a Hindu undivided family, the assessee is not eligible for the relief. The Income-tax Officer relied upon section 164 which specifically stipulated that where the shares of the beneficiaries are not definite, the tax has to be charged "as if the relevant income or part of the relevant income were the total income of an association of persons, or at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment is, therefore, to be made on the trustee as an individual in his representative capacity. The fact that in these cases, the beneficiaries are groups of individuals does not mean that the liability of the assessee is of an association of persons. It was held that the determination of total income, therefore, took into consideration the deduction provided under section 80L as well. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is entitled to deduction under section 80L of the Act. On the income so computed the tax has to be charged in view of the provisions contained in section 164(1) treating such income as if it was the income of an association of persons or at the rate of 65 per cent., whichever was more beneficial to the Revenue. Therefore, the assessee is entitled to deduction under section 80L of the Act." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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