AJIT K. SENGUPTA, J.

( 1 ) IN this reference made at the instance of the Revenue, the following question of law has been referred to this court under Section 256 (1) of the Income-tax Act, 1961, for the assessment year 1984-85 :" Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the income of Shri Krishna Bandar Trust should be assessed taking the status of the assessee as 'individual' and not 'association of persons' and, consequently, the deduction under Section 80l of the Income-tax Act, 1961, should be allowed

( 2 ) SHORTLY stated, the facts are that the assessee is a discretionary trust and was assessed in the status of an "association of persons". The assessee claimed relief under Section 80l of the Income-tax Act, 1961. The Income-tax Officer was of the view that, having regard to the provisions of Explanation 2 to Section 164 of the Income-tax Act, 1961, a discretionary trust has to be taxed as an association of persons and, therefore, deduction under Section 80l was not available to the assessee-trust. The Commissioner of Income-tax (Appeals) upheld the stand of the assessee-trust following the decision of the Hy

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