COMMISSIONER OF INCOME TAX Vs. SHARAD NARANDAS PATEL

JUDGEMENT

(1.) THE original Income -tax Reference No. 73 of 1987, which related to five assessment years, namely, 1978 -79 to 1982 -83 arising out of five appeals (I. T.A. Nos. 1842 to 1846) decided by the Tribunal is ordered to be split up into five references. They are numbered as Income -tax References Nos. 73, 73A, 73B, 73C and 73D of 1987 for the respective years 1978 -79 to 1982 -83.

(2.) THE Tribunal has referred the following question in these references for the opinion of this court :

(3.) IN References Nos. 73, 73A, 73B, 73C and 73D of 1987, the assessee is the individual who was the managing trustee of Sharad Family Trust, the beneficiaries of which are the sons of the assessee. According to the Income -tax Officer, the entire business and administration of the trust was being handled by the assessee and the other trustees had no knowledge of the affairs of the trust whatsoever. It was held that the entire income of the trust belonged to the assessee and was brought to tax accordingly. The Commissioner of Income -tax (Appeals), however deleted the addition following his decision in the case of Sharad Family Trust (Income -tax Appeals Nos. 178 to 180), decided on June 6, 1983. The Tribunal held that the income of the trust was to be assessed in the hands of the trust and not the managing trustee who was the assessee in that case and confirmed the order of the Commissioner of Income -tax (Appeals).