2003 (9) TMI 768

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....he effect that the income substantively assessed in the hands of the main trust cannot be again assessed in the hands of the beneficiary trusts, and that the appellant did not raise any question of law. The learned Senior Counsel for the petitioner states that the Revenue is in the process of challenging the order of the Division Bench made in those appeals before Hon'ble Supreme Court. So far as this group of petitions is concerned, the Rajkot Bench of Income-tax Appellate Tribunal, by its order dated 24th May, 2002, concluded that the assessment order dated 22nd March, 2000 was not erroneous and prejudicial to the interest of the Revenue and, therefore, the CIT was not justified in exercising powers under Section 263 of the Income-....

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....rder of the CIT (Appeals), passed under Section 263 of the Act. During the course of the arguments, the learned Senior Advocate appearing for the petitioner in all these petitions tried to raise a contention that the interest income paid by the main trust to the assessee beneficiary trusts was an interest income in their hands, and irrespective of the fact whether such amount was allowed as a deductible expenditure in the assessment of the main trust it was liable to be taxed in the hands of the assessee beneficiaries. In support of this contention, the learned counsel wanted to rely upon material which was admittedly not placed before the Tribunal, including the assessment order of 1988-89, the appellate order of 1988-89 and the order o....