COMMISSIONER OF INCOME TAX Vs. SOWMINI RAMESH

JUDGEMENT

(1.) AT the instance of the Department, the Tribunal referred the following two common questions for the asst. yr. 1979-80 in the case of the two assessees for the opinion of this Court under s. 256(1) of the IT Act, 1961 :

(2.) THE assessees are trusts assessed in the status of "AOP" by the ITO. THE assessees are private trusts created by deeds of settlement and managed by a single trustee. THE trusts were intended to provide funds to be applied to certain beneficiaries mentioned in the trust deeds. In the matter of trust funds to be applied for the benefit of beneficiaries a discretion has been vested in the trustee as to the extent and to the purpose for which such funds were to be spent in respect of each one of the beneficiaries. On the ground that the shares of the beneficiaries are not ascertainable, the ITO assessed the assessees in the status of "AOP".