TaxTMI 
TaxTMI 
2024 (11) TMI 221
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....ce of notices by emails at all, as in these years he faced unfortunate disturbances due to death, separation, change residence, illness, etc. in families and so he was unable to respond. 4. The Assessee prays to allow to add, amend or alter grounds of appeal at the time of hearing." 2. Succinctly stated, Ms. Kajal Jadwani, minor daughter of Shri Deepak Jadwani is the sole beneficiary of "Kajal Deepak Trust" a discretionary trust, which was established vide trust deed dated 24.03.2003. Shri Deepak Jadwani (father) and Smt. Harsh Jadwani (mother) are the trustees of the aforesaid private discretionary trust. As per the trust deed, the aforementioned trustees shall on the date on which Ms. Kajal Jadwani (supra) attains the age of 18 years and 1 day or date of death which ever is earlier, shall hand over and transfer all the assets forming part of the trust fund to her and in the event of her death to her legal heir/heirs according to Hindu law of intestate succession. 3. Ms. Kajal Jadwani had filed her return of income for A.Y. 2017-18 on 19.11.2017, declaring an income of Rs. 96,750/-. Thereafter, her case was selected for scrutiny assessment u/s. 143(2) of the Act. ....
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....th her on 31.03.2016, which in turn, was sourced out of the accumulated cash gifts that were received from her friends/relatives in the preceding years. The A.O held a firm conviction that as the "gift deeds" despite specific directions were not placed on record, therefore, neither the identity of the donors nor the genuineness of the gift transactions could be established. 6. Apropos the claim of Ms. Kajal Jadwani that she was regularly filing her returns of income (through her father) for the last many years, the A.O observed that not only the returns therein filed were below the taxable limit, but also the source of the income could not be gathered therefrom. The A.O did not find favour with the explanation as regards the source of the cash deposits in the bank account and held the same as her unexplained money u/s. 69A of the Act. Accordingly, the A.O vide his order passed u/s. 143(3) of the Act, dated 29.11.2019 determined the income of the assessee, viz. Ms. Kajal Jadwani at Rs. 9,96,750/-. 7. Aggrieved with the assessment framed in the hands of Ms. Kajal Jadwani the matter was carried in appeal by the trust, viz." Kajal Deepak Trust" before the CIT(Appeals). Although t....
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....ny Issue penally notice u/s 271AAC Issue demand notice and Challan accordingly. Working of tax as per ITNS 150 is enclosed herewith. Further, on perusal of records, it is noticed that during the course of appellate proceedings, appellant had not filed or uploaded any response and written submissions in the office of the undersigned to substantiate its claim made in the grounds of appeal. Only he remained silent since filing this appeal to till date. The non- compliance of the appellant in response to the notices issued u/s 250 of the Act on various dated is summarized as under: Sr. No. Notice issuing date Date fixed for hearing Way of service of notice Result 1. 28.01.2021 12.02.2021 E-mail No compliance 2. 06.12.2023 14.12.2023 E-mail No compliance Considering the non-compliance as detailed above by the appellant, it seems that the appellant is not interested to pursue his appeal. Therefore, it cannot be kept pending adjudication for indefinite period. The appellant has not bothered to comply to the notices issued during the course of appellate proceedings. This shows that the appellant is not interested in pursuing hi....
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.... Officer was arbitrary, biased, irrational, vindictive or capricious without any basis. The addition/disallowances were made by the Assessing Officer after due deliberation. There is no concrete evidence(s) on record to controvert the decision of the Assessing Officer. I find no reason to interfere with the decision of the Assessing Officer. The additions/disallowances made by the Assessing Officer are, therefore, confirmed. In the result, the appeal of the appellant is dismissed." 8. The assessee trust being aggrieved with the order of the CIT(Appeals) has carried the matter in appeal. 9. I have heard the Ld. Authorized Representatives of both the parties, perused the orders of the lower authorities and material available on record. 10. Shri R.B Doshi, Ld. Authorized Representative (for short 'AR') for the assessee at the threshold was confronted with the fact that though the impugned order u/s. 143(3) of the Act, dated 29.11.2019 was passed in the case of the assessee, viz. Ms. Kajal Jadwani, daughter of Shri Deepak Jadwani (trustee), PAN : AFSPJ0517J, but the appeal against the said order had been filed by the trust, viz. Kajal Deepak Trust, PAN : AAATK....
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....ust with the CIT(Appeals)-2, Raipur dated 28.01.2020. 13. Per contra, the Ld. Departmental Representative (for short 'DR') relied on the orders of the lower authorities. 14. I have thoughtfully considered the facts involved in the present case in the backdrop of the records before me. I am unable to comprehend that now when the assessment was framed by the A.O vide order u/s. 143(3) of the Act dated 29.11.2019 in the case of Ms. Kajal Jadwani, PAN: AFSPJ0517J then how the appeal against the said assessment order could have been filed by "Kajal Deepak Trust", PAN : AAATK5919N, i.e. a different entity. Also, I am unable to fathom that as to how the CIT(Appeals) had lost sight of the said material fact and proceeded with and disposed off the appeal. It is a case where the assessment had been framed in the hands of one entity but the impugned appeal had been filed by another entity. I, say so, for the reason that the assessee viz. Ms. Kajal Jadwani, PAN : AFSPJ0517J (Individual), i.e. the sole beneficiary in whose case the assessment had been framed u/s. 143(3) of the Act dated 29.11.2019 is a separate and distinct entity as against Kajal Deepak Trust, Raipur, PAN : AAATK....
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....nd distinct entity from the assessee trust, viz. " Kajal Deepak Trust" (PAN : AAATK5919N) who had filed the appeal before the CIT(Appeals) and had obtained an adjudication vide the latter's order u/s. 250 of the Act dated 07.02.2024, therefore, on the said count itself the order passed by the CIT(Appeals) suffers from a serious infirmity and cannot be sustained on my part. 15. I am unable to subscribe to the explanation of the Ld. AR as regards the reason as to why the appeal was filed by "Kajal Deepak Trust", despite the fact that the impugned assessment order u/s. 143(3) of the Act, dated 29.11.2019 was passed in the case of the beneficiary, viz. Ms. Kajal Jadwani. Although I principally concur with the Ld. AR that the discretionary trust, viz. Kajal Deepal Trust is the primary assessee whose income is liable to be brought to tax in the hands of the representative assessee, i.e. the trustee or trustees u/s. 160(1)(iv) of the Act, but at the same time, I may herein observe, that as per Section 166 of the Act there is no bar on the department to frame direct assessment of a person on whose behalf or for whose benefit income therein referred to is receivable. Accordingly, now....