COMMISSIONER OF INCOME TAX Vs. GANGADHAR SIKARIA

JUDGEMENT

(1.) BY this application under section 256(2) of the Income -tax Act, 1961 ('the Act'), the revenue prays the High Court for directing the Tribunal, Gauhati to submit a statement of the case to the High Court for considering the questions of law that have arisen out of the order of the Tribunal in the appeal before the Tribunal by the revenue against the assessee. The assessee is a HUF. The major members of the HUF including the karta created a trust, viz., Gangadhar Sikaria Family Trust out of certain properties of the HUF with major members as trustees and all the members of the HUF except the karta as beneficiaries.

(2.) THE ITO holding that the trust is not a valid trust included the income of the trust in the assessment of the HUF. On appeal by the assessee, the AAC allowed the appeal holding that the trust is a valid trust. The Tribunal, on the appeal preferred by the revenue, upheld the decision of the AAC holding that the trust is a valid one.