TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 973
X X X X Extracts X X X X
X X X X Extracts X X X X
....ection 143(3) r.w.s 147 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for Assessment Year 2011-12. 2. The case of the assessee was reopened with the approval of the PCIT, Delhi-50, on 29.03.2018 on the ground of deposit made by the assessee Rs. 8,08,00,000/- as term deposit and Rs. 46,05,504/- as interest received other than interest of securities resident. The income amounting to Rs. 8,54,05,504/- as having been escaped assessment notice under Section 148 of the Act dated 30.03.2018 was issued. The re-assessment was finalized upon making addition of Rs. 4,82,40,602/- under Section 143(3) r.w.s 147 of the Act which was deleted by the First Appellate Authority. Hence, the instant appeal before us. 3. At the time of....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., I find the following relevant: a. The trust was set up in 2005. For A.Y. 2006-07 to 2009-10 the return of the trust was filed on the PAN No. of the trust. These returns were filed manually. b. For A.Y. 2010-11 the return of the trust was again filed manually. I. have noted from the acknowledgement of the return filed for the year 2010-11 that even though the PAN quoted therein is that of Shri Manoj Kumar, the name of the assessee is written as Merlina Foundation PAN No. AABTM5893L through trustee Shri Manoj Kumar. The gross total income for AY 2010-11 is R5.65,56,123/- c. Return of the trust for assessment year 2011-12 and 2012-13 were filed electronically on the PAN of one of the trustee i.e. Shri Manoj Kumar. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ity of the system for accepting or rejecting the returns of this nature, yet it appears credible that the online return filing system was not robust enough 10 year back to distinguish between a charitable trust and a discretionary trust. 14. With the above observation I am inclined to hold the return filed on 30.09.2011 valid for the following reasons: A. It is believable that there was a difficulty in filing of returns online at that time. B. The appellant comes across as law abiding. The appellant was keen to somehow file the return of income despite facing technical difficulties, and therefore exercised the best available option at that point of time. C. Appellant paid due taxes as applicable to the ap....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 17. While not disrespecting the interpretation and conclusion drawn by the Assessing Officer on this issue I find that the issue is required to be examined after considering various other parameters including judicial pronouncements. 18. The appellant has heavily relied on the decision of Hon'ble ITAT, B Bench, Mumbai in ITA No. 5661/Mum/2016 in the case of Bal Gopal Trust. The question whether Section 54F benefit will be available to private trust has been decided by the Hon'ble Tribunal by recording as under:- "7. Upon careful consideration we find that the issue before us is as to whether the assessee trust, which is for the sole benefit of an individual, will be entitled to deduction u/s. 54F or not, when it....
X X X X Extracts X X X X
X X X X Extracts X X X X
....will get in a particular assessment must be made available to the trustee while assessing him u/s 161. In the present case before us also the issue is benefit of investment made in purchase of flat for deduction u/s. 54F of the Act by the trustees and the sole beneficiary of the trust is the individual Ms. Vidushi Somani. Hence the ratio emanating from the above jurisdictional High court decision is squarely applicable on the facts of the case. The distinction referred by the Ld. D.R is devoid of cogency. Furthermore, Hon'ble Gujarat High court in the case of Niti Trust (Supra) has similarly granted benefit of assessment of a trust in the capacity of a individual. For this proposition Hon'ble High Court had relied upon the decision ....