Law:

Section:

Section 161, read with section 164, of the Income-tax Act, 1961 - Representative assessee - Liability of - Assessment years 1963-64 to 1970-71 - Whether where all employees of assessee-company were beneficiaries under a trust, income of said trust was assessable under section 161 and not under section 164 as beneficiaries were specifically known and determinate at end of each accounting year - Held, yes Facts For the assessment years 1963-64 to 1970-71, the Tribunal held that all the employees of the assessee-company were the beneficiaries under a trust and as such the beneficiaries were specifically known and determinate at the end of each accounting year and that further their shares in the income of the said trust fund were known and determinate and, thus, the income of the said trust fund received by the trustees for each of the eight assessments from 1963-64 to 1970-71 was assessable to income-tax under the provisions of section 161 and not under those of section 164. On reference by the revenue : Held In view of the decision in CIT v. Trustees of Staff Gratuity Fund of Shree Ram Mills Ltd. [1986] 162 ITR 471 (Bom.), the order of the Tribunal was to be upheld. Case referred to CIT v. Trustees of Staff Gratuity Fund of Shree Ram Mills Ltd. [1986] 162 ITR 471 (Bom.). G.S. Jetley, Mrs. Manjula Singh and K.C. Sidhwa for the Applicant. JUDGMENT Bharucha, J. - This reference concerns the assessment years 1963-64 to 1970-71 and raises at the instance of the revenue the following questions : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that all the employees of the assessee-company were the beneficiaries under the trust 'Trustees of Raptakos Bratt & Co. (P.) Ltd. employees' service gratuity fund' and as…

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