2023 (4) TMI 1108
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....ut appreciating that there was no escapement of income warranting issuance of notice under section 148 of the I.T. Act. (B) That on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in sustaining the order passed by the AO under section 147/143 of the I.T. Act without appreciating that when the reason recorded had ceased to survive, there was no jurisdiction with the AO to proceed further to pass the impugned order. (C) That on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in sustaining the order passed by the AO under section 147/143 of the I.T. Act without appreciating that validity of reassessment order has to be tested only by reference to recorded reasons and where the basis o....
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.... the property income is definite and ascertainable, share of each of such co-owner computed in accordance with sections 22 to 25 of the I.T. Act is to be included in his total income in terms of section 26 of the IT Act. The approach of the Ld.CIT(A) holding otherwise on the basis of lease deed executed between the trust and the tenants is misconceived, perverse, unsustainable and liable to be quashed. (D) That on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in holding that taxes paid by the beneficiaries are less than the tax chargeable in the case of the trust and such a finding is against the provisions of section 161(1) of the IT Act which mandate that the trustees cannot be assessed on the aggregate inc....
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....he assessee has not disclosed fully and truly material facts necessary for assessment and there has been escapement of income to the tune of Rs.48,55,536/-. In response to notice u/s 148 of the Act, the assessee filed return of income on 25.04.2017 showing nil income. In the course of reassessment proceedings the assessee submitted before the Assessing Officer that assessee trust is a specific trust, the income generated from the property held by the trust was passed on to the beneficiaries of the trust and all the beneficiaries have filed return of income for the AY 2010-11 declaring rental income from the property held by the trust in their individual hands as beneficiaries as per the trust deed. The assessee also furnished copies of Inco....
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.... is no escapement of income as alleged by the Assessing Officer. The Ld. Counsel submits that when once the income is shown in the hands of the beneficiaries the very same income cannot be assessed in the hands of the trust. The Ld. Counsel referring to page 33 and 34 of the Paper Book which is the circular of the CBDT submits that it has been clarified by the Board once choice is exercised to tax the beneficiaries the trust cannot be taxed on the very same income. Therefore, the Ld. Counsel submits that the reasons for reopening seized to exist as the beneficiaries have already field their Income tax returns for the AY 2010-11 which are placed at pages 11 to 32 as there is no escapement of income. 5. Ld. DR strongly placed reliance on the....
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....more chargeable to tax for the AY 2010-11 escaped assessment. We observe from the reasons that the Assessing Officer noted that the assessee trust has received rental income of Rs.69,36,480/- and while completing the reassessment considers the rental income of Rs.87,68,124/- as income escaped assessment. 7. On perusal of the Income tax returns of the beneficiaries which were also available with the Assessing Officer at the time of reassessment proceedings as has been recorded a finding in the reassessment order that the assessee has produced the Income tax returns of the beneficiaries. We noticed that the beneficiaries have shown their share of rental income of the property held under the trust and in such case there is no escapement of in....