2014 (8) TMI 601

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ve references have been made by the learned Income Tax Appellate Tribunal (hereinafter referred to as "Tribunal") to consider the following common question of law. "Whether on the facts and law and in the circumstances of the case, the Tribunal was right in law in holding that income, which according to the Trust Deed was required to be allocated to the Ten beneficiaries of the Second Schedule of the Trust Deed, having aggregate beneficial share of 50%, was liable to be taxed at maximum marginal rate u/s.164 of the I.T. Act?" 3. That the facts leading to the present references in nutshell are as under: 3.1 That one Shri Babubhai Ishwarbhai Patel settled Trust Deed dated 04.06.1980 appointing three persons viz. (1) Shri Karsanbhai K. Pate....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....No. Name of Beneficiary Share of Beneficiary 1 Minor Kalpna Bhagwandas 5% 2 Minor Mahesh Bhagwandas 5% 3 Minor Lalo Bhagwandas 5% 4 Minor Devila Prabhudas Patel 5% 5 Minor Savita Prabhudas Patel 5% 6 Minor Hitesh Prabhudas Patel 5% 7 Minor Nitesh Prabhudas Patel 5% 8 Minor Janak Pramodbhai Patel 5% 9 Minor Sangita Jagdishbhai 5% 10 Minor Alkesh Jagdishbhai 5%   Total: 50.00% K.V. Patel Family Trust Schedule-II forming part of this Trust Deed vide Clause III(b)(ii) (50.0% of Income) Sr.No. Name of Beneficiary Share of Beneficiary 1 Minor Kalpna Bhagwandas 5% 2 Minor Mahesh Bhagwandas 5% 3 Minor Lalo Bhagwandas 5% 4 Minor Devila Prabhudas Patel 5% 5 Minor Savita Prabhudas Patel 5% 6....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ders for both the years i.e. 1982-83 and 1983-84 and directed the ITO to subject the income allotted to ScheduleII to tax at the maximum marginal rate in the hands of the Trustees and to take consequential action for the levy of statutory interest under section 139 etc. That the assessee preferred appeals before the learned Tribunal and the learned Tribunal has dismissed both the appeals of the assessee and thereafter at the instance of the assessee, present reference application being Income Tax Reference Application No.67/2005 is made. However, in the subsequent year for AY 1984-85 and 1985-86, the learned Tribunal took the contrary view and held that the assessee Trust is a specific Trust and therefore, at the instance of the Revenue the....