COMMISSIONER OF INCOME TAX Vs. MANI ENTERPRISES

JUDGEMENT

(1.) IN this reference at the instance of the Revenue, the following question is referred to our opinion in respect of asst. yr. 1984-85 : "Whether the Tribunal is right in law and on facts in holding that provisions of s. 167A were not applicable in the present case and further directing that the assessee should be taxed at appropriate rate considering it as having determinate shares?"

(2.) WE have heard Mr. M.R. Bhatt, learned standing counsel for the Revenue. Though the notice is unserved on the respondent-assessee, we are inclined to proceed with the hearing of this reference in view of the fact that the question referred for our opinion is required to be answered in favour of the assessee and against the Revenue.

(3.) MR. M.R. Bhatt, learned standing counsel for the Revenue, has submitted that since the trust deed provided for admitting new members, the shares of the existing members were liable to change and, therefore, the shares were indeterminate and accordingly the provisions of s. 167A were attracted.