2014 (1) TMI 696

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....Act. 2. At the time of hearing of the appeal the ld. AR for the assessee did not press the ground challenging the legal validity of re-opening of the assessment under section 147 of the Act. This ground is, therefore, dismissed as not pressed. 3. The second dispute is regarding allowability of claim of exemption of interest income of Rs.7.00 lacs received by the assessee from RBI relief bonds under section 10(15) of the Act. Under the said provision the interest income received from RBI relief bond by an individual or HUF is exempt from tax. 3.1 Facts in brief are that the assessee for the assessment year 2006-07 had declared total income of Rs.6,22,460/- which had been accepted by Assessing Officer in the assessment made under sec....

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....trust in this case had only one beneficiary and there was also one trustee. The interest income had been received on behalf of the beneficiary and, therefore has to be taxed in the like manner as in case of beneficiary who was an individual. Therefore, the assessee was entitled for exemption under section 10(15) of the Act. The ld. AR referred to the judgment of Hon'ble High Court of Bombay in the case of DIT(Exemptions) v. Shardaben Bhagubhai Mafatlal Public Charitable Trust (247 ITR 1) in which it has been held that the assessee trust had to be assessed as individual and not association of persons and was thus entitled for deduction under section 80L of the Act. He also placed reliance on the judgment of Hon'ble High Court of Bombay in ca....

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....st in which shares of the beneficiaries were not ascertainable was not a HUF or association of person. Such trust was an individual and thus entitled to deduction under section 80L of the Act. The Hon'ble High Court also observed that the term "individual" did not mean single human being and that it included a body of individuals constituting a unit for the purpose of the Act. The assessment of income in the hands of the trust had therefore to be made in the same manner and to the same extent as it would have been made in the hands of beneficiaries. The Hon'ble High Court therefore, held that the representative of the assessee in case of discretionary trust has to be regarded as individual and would be entitled for deduction under section 8....