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TMI Blog2025 (4) TMI 1227X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case, the Tribunal was justified in law in holding that the status of the Appellant Trust was that of Association of Persons and thus the lower authorities were justified in disallowing interest of Rs.5,38,100/- paid to the beneficiaries under Section 40(b) of the Income Tax Act, 1961 ? 2. The facts giving rise to filing of this Appeal, in nutshell, are that during the material time Mehta Jaising Combine was constituted as a Private Specific Trust which was settled on 27/3/1986 by Ms. Indira B. Jaising. Six trustees were entrusted to execute the object of the Trust for the benefit of 32 beneficiaries, which included minor beneficiaries, whose legal guardians were not the trustees. The assessee has been filing the return of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts a common source of income in which two or more persons are interested as members or otherwise is neither conclusive nor determinative of the status of a person. It is also submitted that a Private Specific Trust, even if doing business, cannot be treated as an Association of Persons. It is further submitted that neither the trustees nor beneficiaries have come together with a common purpose or common action with the object of producing income, profits or gains. In support of the aforesaid submissions, reliance has been placed on the decision of the Supreme Court in the case of CIT VS. Indira balkrishna (supra) and on a division bench decision of this Court in CIT v. MARSONS BENEFICIARY TRUST (1991) 188 ITR 253 (Bombay). 6. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke note of Section 40 (ba) of the Act which is extracted below for the facility of reference: "40. Notwithstanding anything to the contrary to section 40 to 48 the following amounts shall not be deducted in computing the income chargeable under head "the Profits and gains of business or profession. (ba) In the case of an Association of Persons or body of individuals (other than a company or co-operative society or a society registered under the Societies Registration Act, 1860 (2A of 1860) or under any law corresponding to that Act in force in any part of (India), any payment of interest, salary, bonus, commission or remuneration, by whatever name called, made by such association or body to a member of such association or body." 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the Assessing Officer has passed the order. It has further held that declaration by assessee is not a mistake which has been erroneously made, as no attempt has been made to rectify the aforesaid mistake. It is also pertinent to note that the assessee, while filing the return, had described itself as an Association of Persons for which neither any attempt has been made to correct the so called mistake nor any explanation has been offered for making such a mistake. 12. The order passed by the Assessing Officer as well as the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal is based on meticulous appreciation of evidence. The finding of fact recorded therein by no stretch of imagination can be said to be perverse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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