Tip clearance of axial compressor blades allows leakage of the flow, generates significant losses and reduces the compressor efficiency. The present paper aims to discuss the axial compressor tip aerodynamics for various configurations of tip gap with trench. The various configurations are obtained by varying the clearance, trench depth, step geometry and casing contouring. In this paper the axial compressor aerodynamics for various configurations of tip gap with trench have been studied. The leakage flow structure, vorticity features and entropy generations are analyzed using RANS based CFD. The linear compressor cascade comprises of NACA 651810 blade with clearance height varied from 0.5% to 2% blade span. Trail of the tip leakage vortex and the horseshoe vortex on the blade suction side are clearly seen for the geometries with and without casing treatments near the stalling point. Since the trench side walls are similar to forward/backing steps, a step vortex is observed near the leading edge as well as trailing edge of the blade and is not seen for the geometry without the casing treatment. Even though the size of the tip leakage vortex seams to be reduces by providing a trench to the casing wall over the blade, the presence of additional vortices like the step vortex leads to comparatively higher flow losses. An increase in overall total pressure loss due to the application of casing treatment is observed. However an increase in stall margin for the geometries with casing is noted.