COMMISSIONER OF INCOME TAX Vs. BHILAI MACHINE TOOLS

JUDGEMENT

(1.) THIS is a reference under S. 256(1) of the IT Act at the instance of the Revenue and the following question of law has been referred by the Tribunal for answer of this Court :

(2.) THE brief facts giving rise to this reference are thus : The assessee trust was created by settler one Shri Sohanlal by settling a sum of Rs. 5,100 for the benefit of minors Rajesh, Satish, Ravi Kumar and Ku. Rinku. The assessee claimed that it is not liable for tax being a specific trust with beneficiaries having specified shares. The AO accordingly assessed the trust as an Association of Persons (AOP). In appeal, the AAC directed to assess the income of the trust in the hands of the beneficiaries and not to tax the trust in the status of AOP.

(3.) THE Tribunal in similar circumstances in the case of Oswal Traders vs. CIT referred a question to this Court for answer and hence that reference was answered by this Court.