9911796707
TMI Blog2024 (7) TMI 1475X X X X Extracts X X X X X X X X Extracts X X X X ..... it appears to us that he took the assistance of Section 164(1) of the Act in calculation of the tax by saying that in the present case share of the income of the Trust is unknown and not determinative. The submission of ld. Counsel for the assessee is that in the present case determination of the tax should be as per the 2nd proviso to Section 164(1) of the Act treating the assessee as an AOP and to tax it in conjunction with Section 160(iv) of the Act. Share and income of the trustees have already been determined in the last will. So, we find substance in the arguments of the ld. Counsel for the assessee that tax should be computed at normal rate and not at the maximum marginal rate in short MMR. Appeals filed by the assessee allowed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conjunction with Section 160(iv) of the Act. The Assessing Officer (in short ld. 'AO') rejected the petition confirming the tax at maximum marginal rates in short MMR. Being aggrieved, the assessee preferred appeal before ld. CIT(A) but wherein also assessee failed in getting relief, as a result of which, the present appeal has been preferred. 3. ld. Counsel for the assessee challenged the impugned order thereby saying that order passed by the lower authorities are arbitrary, erroneous and without proper reasons. His main contention is that there is a family Trust and at the creation of the family Trust income has been determined as it appears from the last will of the executor Savita Gouri Malani. The ld. Counsel for the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receive on behalf or for the benefit of any person, such trustee or trustees; 4.1. We have perused 2nd proviso to Section 164(1) of the Act which reads as under: 164. (1) Subject to the provisions of sub-sections (2) and (3), where any income in respect of which the persons mentioned in clauses (iii) and (iv) of sub-section (1) of section 160 are liable as representative assessees or any part thereof is not specifically receivable on behalf or for the benefit of any one person or where the individual shares of the persons on whose behalf or for whose benefit such income or such part thereof is receivable are indeterminate or unknown (such income, such part of the income and such persons being hereafter in this section referred to as releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the relevant income or part of relevant income as if it were the total income of an association of persons .. 4.2. On perusal of the documents filed by the assessee it appears to us that last will of the executor Savita Gouri Malani reveals thus: The name of this Trust shall be SAVITA GAURI MALANI GRANDCHILDREN TRUST and its beneficiaries will be the followings: (a) Hemal B. Malani (b) Jigar B, Malani (both sons of Sri Bhikhu J. Malani) (c) Jay N Malani (d) Nidhi N. Malani (son and daughter of Sri Naresh J Malani All the aforesaid beneficiaries shall have equal rights, titles and interests in the corpus and its income 5. On perusal of the above, it appears to us that share and income of the trustees have already been determined in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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