2000 (2) TMI 188

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....ted four trusts for the benefit of his children. The assessee and his wife Smt. Tahera Mahmood Ali were the trustees of these trusts viz., (i) Masood & Masoom Benefit Trust, (ii) Latif Unnisa & Mansoor Trust, (iii) Manzoor Benefit Trust, and (iv) Masood and Magdoom Benefit Trust. These four trusts were created by the assessee by way of gifting Rs. 4,000 to the trusts and thereafter lending a sum of Rs. 4,24,481.50 to these trusts. Later-on, the assessee, acting as a tustee, purchased 85.65 acres of land from Shri A.P. Padmanabhan and others in 1970 out of the assets of these trusts. Ultimately, the assessee got converted the above land as 'farm house layout' and after getting permission to sell the lands to intending buyers sold the land in....

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....d not the trusts. On the other hand, the learned authorised representative has relied on the order of the CWT(A) completely and has submitted that the land in question being the agricultural land, there was no need to file the returns so far as these lands are concerned. Moreover, he has refuted the contention of the learned Departmental Representative that the AO did not give opportunity to the assessee to prove forming of the trusts. He has also drawn out attention to purchase deeds which have been placed before us that these properties were purchased long back and these were not included in the previous assessments by the AO, and it was not questioned upto asst. yr. 1987-88. He has also refuted the contention of the learned Departmental ....

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....5 lakhs for the assessment years in question. The learned Departmental Representative has submitted that the assessee had not disclosed these amounts in his bank accounts. The learned authorized representative of the other hand, has submitted that the amounts were never received by the assessee but were directly paid to Vijaya Bank and IT Department for repayment of loan and for discharge of the assessee's liabilities. The case of the Department is that the assessee did not claim this fact at the time of the assessment. We are satisfied by the submissions made by the learned authorised representative coupled with the relevant papers which have been shown to us including the annexure to the AO's order at p. 12 of the paper book that the amou....