Per Shri T.V.K. Natarajachandran, Accountant Member - This is an appeal by the assessee which is directed against the order of the CIT(A), Nashik dt. 7-3-1988. The CIT(A) held that the trust is not valid and therefore, it is to be assessed as AOP as one unit at maximum marginal rate, because the shares of the beneficiaries are not known and indeterminate. Thus he has confirmed the assessment order passed by the ITO and dismissed the appeal filed by the assessee.

2. The assessee has taken several grounds to urge that the CIT(A) erred in his reasons and conclusion and the trust is to be held as a valid trust and a specific trust and the income is to be assessed in the hands of the beneficiaries to the extent of share income derived from the trust or the trustee should be assessed to the same extent as individual beneficiaries of the trust. It is also urged that the authorities erred in concluding that the income of the trust should be assessed in the hands of the settlor and in making protective assessment on the trust.

3. One Shri Surajmal Bafna son of Shri Dhondiram Bafna settled a sum of Rs. 1,100 in trust for the benefit of the family members of late Shri Narayandas Chordiya e