TaxTMI 
TaxTMI 
2015 (2) TMI 171
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....icer to frame the assessment on substantive basis in the hands of the assessee, on the ground that Bharat Trust was a specific trust?" 2. The relevant facts are that Assessing Officer for assessment year 19811982, finalised the assessment taking the status of the assessee as an individual and the income declared in the return was assessed protectively. The matter was carried in the Appeal and CIT (Appeals)held that Bharat Trust was a specific trust and the provisions of section 164 of the Act was not applicable. He therefore held that the assessment in the hands of assessee should be finalised on substantive basis. The Tribunal in the further appeal, confirmed the order of CIT(Appeals) against which, the above referred question has been ....
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....plications filed by the revenue, which gave rise to the present Incometax references. Since identical question is involved in all the Incometax references, for the sake of convenience, the question is reproduced from I.T.R. No. 01 of 1998 and facts are also taken from the said reference. The question is as under:- Whether the Appellate Tribunal is right in law and on facts in holding that share income of the assessee as a beneficiary from M/s. Bharat Trust / Navbharat Trust, Norma Trust should be assessed on substantive basis ? 2. The respondent in all these references are beneficiaries of main Trust, namely, M/s. Bharat Trust and M/s. Navbharat Trust. The assessees declared beneficial income in the returns filed as per allocation rec....
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....visions of Section 161 (1) of the Incometax Act, 1961 and their income cannot be subjected or brought to tax at the maximum marginal rate under Section 164 (1) of the Act. It has, therefore, been contended on behalf of the assessee that the income of the main Trust having been allocated amongst the beneficiaries as per Section 161 (1) of the Act, income received in the hands of the beneficiaries deserve to be assessed on substantive basis. In this view of the matter, the Tribunal upheld the order of the first Appellate Authority in the cases of the beneficiaries involved. 5. Since the reference has been made in the cases of the main Trust i.e. Bharat Trust and Navbharat Trust to this Court at the instance of the revenue separately, the Trib....
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....ne of us (K. A. Puj, J.) was a party did not agree with the view taken by the earlier Division Bench and admitted Special Civil Application No. 7110 of 2002 with Special Civil Application No.7244 to 7257 of 2002 on 14.08.2002 and passed an order that having regard to the order dated 30.07.2001 passed by another Division Bench of this Court in Tax Appeal Nos.188 to 228 of 2001, with which the subsequent Division Bench was not inclined to agree, the petitions were ordered to be listed before a larger Bench after obtaining appropriate orders of the Hon'ble Chief Justice. 8. Pursuant to the said order, Full Bench was constituted and vide its order dated 17.09.2003, the Full Bench took the view that the appropriate course appeared to be t....
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....e revenue has filed Tax Appeals before this Court and all the tax appeals were disposed of by this Court on 26.06.2008. From amongst these tax appeals, the assessees of the present references are also covered. A detailed chart showing the name of the assessee, assessment year, ITR number, name of the main Trust and corresponding Tax Appeal number is furnished during the course of hearing of these references. The same is as under : Sr. No. Name Asst. Year ITR No. Name of Main Trust High Court Tax Appeal No. 01.Santokben Kanjibhai Patel.81-821 of 1998 Navbharat Trust 1659 of 2006. 02.Khodidas Vandas Patel OSDFT81-822 of 1998 Bharat Trust 1757 of 2006. 03.Shantaben Karshanbhai Patel81-823 of 1998Bharat Trust 1599 ....
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....directing to assess the income in the hands of the beneficiaries on substantive basis is just and proper. By taking advantage under KVSS and by paying the tax at a lesser amount, the group as a whole has taken the refund of Crores of Rupees which cannot be permitted in law. Submission is, therefore, made that the reference may be decided accordingly. 14. A contention is also urged before the Court that if this Court cannot take a contrary view than the view taken by the earlier Bench, the matter may be referred to the larger Bench. 15. Once we have thought to accept this alternative contention of the revenue and to refer the matter to the larger Bench, since we have our own reservations. However, in view of the fact that the revenue i....