2007 (8) TMI 338

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssessee itself has declared that the income of the Balaji Trust is to be clubbed with the income of the assessee, for the earlier assessment years, treating the income of the Balaji Trust as separately for the assessment years 2000-01 and 2001-02 that of the assessee, whether would be opposed to consistency and logic ?" 2. The facts leading to the above substantial question of law are as under: The assessee is a civil engineering contractor and petrol products dealer for Indian Oil Corporation. The relevant assessment years are 2000-01 and 2001-02 and the corresponding accounting years ended on March 31, 2000, and March 31, 2001, respectively, For the assessment year 2000-01, the assessee filed return of income declaring "nil" income ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e of the association of persons assessee from the assessment year 1987-88 onwards. Hence, the Assessing Officer clubbed the income of Sri Balaji Trust in the case of the assessee for the above two assessment years. Aggrieved by the orders, the assessee filed appeals to the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) allowed the appeals of the assessee and held as follows: "For the assessment year 2000-01, the objection is against clubbing of income from Balaji Trust of Rs. 8,91,060. This issue was considered by me in I. T. A. No. 4 of 2002-03 for the assessment year 1999-2000 by order dated December 4, 2003. As per page 2 of paragraph 3 of the order, respectfully following ITAT/Mds./Bench 'C' in I. T. A....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....essee and trustees of the alleged trust are one and the same and the income of the trust is enjoyed by the members of the association of persons assessee only. Further, it is stated that the alleged trust was not a genuine one and also the association of persons assessee itself have availed of benefit under the scheme of KVSS and paid tax arrears for earlier years, wherein it preferred to club the income of Sri Balaji Trust with the income of the assessee from the assessment year 1987-88 onwards. Hence, the Assessing Officer is right in clubbing the income of Sri Balaji Trust with that of the assessee's income. 5. Heard counsel. In respect of the earlier assessment years in the assessee's own case as well as in the case of Sri Balaji Tru....