2018 (2) TMI 1370

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....ellant, ACIT, Circle 47 (1), New Delhi (hereinafter referred to as 'the Revenue') by filing the present appeal bearing ITA No.2919/Del/2011 and the appellant, ITO, Ward 47 (1), New Delhi (hereinafter referred to as 'the Revenue') by filing the present appeals bearing ITA Nos.2931/Del/2011 & 2932/Del/2011, sought to set aside the impugned orders all dated 29.03.2011 passed by Ld. CIT (Appeals)-XXX, New Delhi on the similar grounds, except the difference in the addition, inter alia that :- "On the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in : (i) Deleting the additions (Rs.62,61,745/-, Rs. 40,36,071/- & Rs. 65,46,327/- in ITA Nos.2919/Del/2011, 2931/Del/2011 & 2932/Del/2011 respectively) rightl....

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....ed by the assessee from the trusts also comes under income in the nature of 'profit in lieu of salary' u/s 17(3)(ii) of the I.T. Act, 1961; as the trust was established by the settler/employer company for the welfare of the employees only and the connection of the assessee with the trust was only on account of his connection with the employer company." 3. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessees, Shri Anaam Mishra, Shri Ashok Dhadwal and Shri Debapriya Dam, in all the aforesaid appeals being employees of M/s. Lintas India Pvt. Ltd. received an amount of Rs. 62,61,745/-, Rs. 40,36,071/- and Rs. 65,46,327/- respectively from employer's various employee's welfare trusts. AO made ....

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.... 3,84,26,959 Lintas Employees Cultural Activities Trust 16,96,77,910 3,84,27,762 Lintas Employees Professional Development Trust 16,96,73,120 3,84,26,652 Lintas Employees Financial Assistance Trust 18,31,23,570 4,14,78,898 Lintas Employees Research Assistance Trust 18,31,18,560 4,14,77,245 Lintas Employees Technological Development Trust 18,31,08,260 4,14,74,516 Lintas Employees Family Planning Assistance Trust 16,96,86,180 3,84,30,436 Lintas Employees Hobbies and Crafts Trust 16,96,79,630 3,84,29,191 Lintas Employees Holiday Assistance Trust 16,96,85,060 3,84,31,260 Lintas Employees Recreation Trust 26,20,24,170 5,93,75,726 7. It is also not in dispute that....

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....hands of other persons i.e. beneficiary of the trust. For ready perusal, operative part of the circular no.157 (F.No.228/8/73-IT (A-II) dated 26.12.1974 is reproduced as under :- "1. Attention is invited to Board's Instruction No. 45/78/66/ITJ(5), dated 24-2-1967 [printed here as Clarification 2] on the subject of assessment made under section 41 (2) of the 1922 Act/section 166 of the 1961 Act. In spite of the clear instructions to the effect that neither section 41 which give an option to the department to tax either the representative assessee or the beneficial owner of the income nor the parallel provisions of the 1961 Act contemplated assessment of the same income both in the hands of the trustees and the beneficiaries, ins....