TaxTMI 
TaxTMI 
2023 (4) TMI 1108
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....in upholding the reopening of the assessment without 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 te....
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....d actual co-owners of the properties of the trust and where the share of each beneficiary in 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 s....
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....deducted u/s 194I during the FY 2009-10 and, therefore, the Assessing Officer has reasoned to believe that the 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 ....
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.... of income for the AY 2010-11 declaring the share of rental income received from the trust and, therefore, there 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 wh....
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.... accordingly the assessment of the assessee trust was reopened stating that income to the tune of Rs.48,55,536/- or 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....