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TMI Blog1989 (4) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... income had been accumulated and not distributed to any beneficiary. On further scrutiny he found that the AOP beneficiary had been charged tax at the maximum rate for the year 1982-83 as the shares of its members were not determinate. Moreover the members of the AOP beneficiary namely, Smt. Chandrikaben N. Kinariwala, Saurabh N. Kinariwala (HUF) Siddharth S. Kinariwala, Saurabh Family Trust and Saurabh Shreya Family Trust were themselves having taxable income and the shares of these four beneficiaries were also unknown and indeterminate. Further 4 members of this AOP beneficiary were common with the AOP beneficiary M/s. Mahalaxmi Enterprise of Mona Trust whose case was also the subject matter of decision on that very day as a group case. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marginal rate. This conclusion has been confirmed by the CIT(A) on appeal filed by the assessee. The assessee has consequently come up in second appeal before the Tribunal. 3. I have heard the representatives of the parties at length in this appeal. The contention of the assessee's representative was that the trust could hold property and there was no specific provision preventing it from doing so. The trust was a full fledged person for the purpose of IT Act and the Law of Property. Gifts made to the trust had been accepted by the ITO. Therefore, the donor and the donee had been accepted as genuine persons The assessee trust had actually only two beneficiaries, namely M/s Willie Investment Pvt. Ltd. And another AOP having certain membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trustees are also members of her family. M/s. Willie Investment Pvt. Ltd. and Ambica Enterprises have their offices at the same place—148, Mukti Medan, Maninagar, Ahmedabad. The second beneficiary is an AOP and consists of members who are relatives of the settlor. In fact a deeper perusal into all the facts and circumstances of the case would show that the income of the settlor has been settled upon members of her family by creating one trust and then making the AOP of the assessee family as a beneficiary of the trust itself. In McDowell and Co. Ltd. it has been observed: "The evil consequences of tax avoidance are manifold. First, there is substantial loss of much needed public revenue, particularly in a welfare State like ours. Next, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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