SEEMATTI TRUST Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE eight references relate to the affairs of a trust named Seematti Trust as sought to be contended. The following two questions are to be answered in Income-tax References Nos. 19 to 22 of 1987 :

(2.) INCOME-tax Reference Nos. 23 to 26 of 1987 relate to rectification orders dated January 8, 1985, in regard to which the following question is required to be answered :

(3.) CONSEQUENTLY, their claim was that they should be assessed as representative assessees within the meaning of Section 160(1)(iv) of the Income-tax Act, 1961. The Income-tax Officer considered the question and found that the trust was without permission of a principal civil court of original jurisdiction and therefore violative under Section 7 of the Indian Trusts Act, 1882. He further held that the immovable properties that came to be transferred to the three assessees styling them as trustees were transferred without executing registered documents in regard thereto and this was a further violation of Section 5 of the Indian Trusts Act, 1882. He further held that there was no proper and legal document which could be considered as the instrument of trust by reason of which it could be held that the three assessees could be understood to have been appointed as trustees satisfying the requirements of Section 160(1)(iv) of the Income-tax Act, 1961, entitling them as a consequence to the benefit of Section 161 of the Act. As a consequence, the Income-tax Officer completed the assessment on the basis of treating the three assessees as a "body of individuals".