1994 (12) TMI 48

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....bunal, under section 256(1) of the Income-tax Act, 1961, has referred the following question: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee-trust cannot be taxed in view of the fact that one of the beneficiaries of the trust had earlier been assessed to tax as a beneficiary of the trust ?" From the statement placed before us....

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....ioner negatived this contention taking the assessee before the Tribunal. The basic facts do not have any dent anywhere. It is more clear that the beneficiary, Pramod John Joseph, was already assessed prior in point of time by an assessment order dated December 31, 1980, and it was thereafter that the trust on the basis that it is an association of persons was proceeded against under section 164....

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....no more open to the Department to go behind it and assess the other at the same time. The Tribunal has placed reliance on the decision of the Gujarat High Court in Laxmichand Hirjibhai v. CIT [1981] 128 ITR 747 to the effect that the provisions of these circulars are to be followed by the Income-tax Officer for its own internal discipline. The position that emerges would be a position for the appl....

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....he Tribunal has taken up for consideration the other aspect of the process of double assessment and has placed reliance on decisions taking the view that an attempt to assess the trust much after the completion of the assessment of the beneficiary would be an illustration of double taxation. However, the Tribunal has rest content with the observation that it would not be necessary to refer all suc....