2015 (3) TMI 966

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....ACCOUNTANT MEMBER : In this appeal filed by the Revenue, its grievance is that the CIT(Appeals) held payments made by the assessee to one M/s Sivaraja Ramalinga Trust was not hit by Section 13(1)(c) of Income-tax Act, 1961 (in short 'the Act'). In other words, Revenue is aggrieved that the CIT(Appeals) allowed exemption under Section 11 of the Act to the assessee for the impugned assessme....

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....d the claim of exemption under Section 11 of the Act and treated the assessee-Trust as AOP. 3. In its appeal before CIT(Appeals), argument of the assessee was that Section 13(1)(c)(ii) could be invoked only when any part of the income was used for the benefit of trustees, or other persons mentioned in Section 13(3) of the Act. As per the assessee, the term "concern" mentioned in Section 13(3) of ....

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....us, learned D.R., strongly assailing the order of CIT(Appeals), submitted that it was an accepted position that M/s Sivaraja Ramalinga Trust and assessee-Trust were having some common trustees. Relying on Section 13(3) of the Act, learned D.R. submitted that any concern in which any trustee, who had substantial interest, would fall with the mischief of Section 13(1)(c) of the Act. Assessee-Trust h....

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....r opinion, trustees hold the property of the Trust in a fiduciary capacity and not as owners. The owners of the Trust property were always its beneficiaries and trustees were holding the property and income therefrom for the benefit of beneficiaries and not for themselves. We cannot say that just because two Trusts are having common trustees, they are related concerns. Trust will not fall within t....