Dismissing the appeal of the revenue the Court held that, the Tribunal is justified in holding that  ,funds were transferred by beneficiaries to a trust created by State Government were revocable after three years, provisions of section 62(2) is attracted accordingly the  income arising by virtue of a revocable transfer of assets would be chargeable to tax as income of transferors and would be included in their total income. Income cannot be assessed in the assessment of the Trust at maximum marginal rate of tax applicable to Associate of Persons (AOP) by invoking section 164 in respect of contributions received by the trust. Tribunal also justified in applying the provisions of section 62 to conclude that income arising by virtue of a revocable transfer of assets would be chargeable to tax as income of transferors and would be included in their total income. Accordingly the  funds transferred by beneficiaries viz., 3 companies, to trust created by Settlor, viz., State of Tamil Nadu, were revocable after specified period of three years, provisions of section 62(2) is attracted. Court also held that since number of shares, extent of benefits and their identity had not been disputed, there was no question of applying provisions of said section 164 of the Act. (AY. 2008-09, 2009-10)