Income from trust properties has to be assessed in the hands of beneficiaries

M/s. Abad Trust Vs Asst. Director of Income tax -Exemption (ITAT Cochin) The provisions of section 161(1) of the Act are similar to section 2 1(1) and (2) of the Wealth-tax Act. The Supreme Court in CWT v. Trustees of H. E. H. Nizam’s Family (Remainder Wealth) Trust [1977] 108 ITR 555 also held that : “the consequences of the provisions in section 21(1) of the Wealth-tax Act is that the trustee is assessable ‘in the like manner and to the same extent’ as the beneficiaries. In the first place, there would have to be as many assessments on the trustee as there are beneficiaries with dete...