MRS. ARUNDHATI BALKRISHNA vs COMMISSIONER OF INCOME TAX

The Supreme Court held that under Section 161(1) and Section 166 of the Income Tax Act, 1961, the real income of a Trust must be included in the total income of the assessee, taking into account permissible deductions. The Court clarified that the trustee, as a representative assessee, is liable for tax on the income as if it were received beneficially, and the assessment must reflect the actual income after deductions. The appeals were dismissed, affirming the High Court's decision against the assessee's claim for net income taxation.