COMMISSIONER OF INCOME TAX Vs. USHABEN TRUST SMT

JUDGEMENT

(1.) THIS is a reference at the instance of the Department. The proceedings relate to the assessment of the assessee trust for the asst. year 1969 70. It was stated by the assessee before the WTO that the beneficiaries had already been assessed in respect of their interest in the trust property. However, the WTO completed the assessment on the trust properties treating it as an individual. The assessment was set aside by the AAC. Following its order for the asst. year 1968 69, the Tribunal confirmed the order of the AAC. At the instance of the Department, the Tribunal has referred to this Court the following question of law for opinion :

(2.) SHRI Jetley, learned counsel for the Department, has fairly stated that the issue involved herein is covered by this Court's judgment in the case of Trustees of Putlibai R. F. Mulla Trust vs. CWT (1967) 66 ITR 653. However, the issue, he stated, was pending before the Supreme Court. Shri Dastur, learned counsel for the respondent, stated that the Bombay High Court's decision (supra) has been approved by the Supreme Court in the case of CWT vs. Trustees of H. E. H. Nizam's Family (Remainder Wealth) Trust (supra). Accordingly, we answer the question in the negative and in favour of the assessee.