M/s. Manilal Bapalal Family Benefit Trust, CHENNAI V. ACIT, CHENNAI

ITA 1958/CHNY/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 51681 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 02-08-2011
• Assessment Year: misc
• Appeal Filed On: 18-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K ME GHANATH CHOWHAN
• Assessee Lawyers: LAKSHMICHAND NAHATA
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENNAI (BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER) .. I.T.A. NO. 1958/MDS/2010 ASSESSMENT YEAR : 1987-88 MANILAL BAPALAL FAMILY BENEFIT TRUST, C/O MEHTA JEWELLERY 43, C.P. RAMASWAMY ROAD ABHIRAMAPURAM CHENNAI 600 018. PAN : 116015 - M (APPELLANT) V. THE COMMISSIONER OF INCOME TAX [APPEALS] - XII CHENNAI 600 034. (RESPONDENT) APPELLANT BY : SHRI LAK SHMICHAND NAHATA, C.A RESPONDENT BY : SHRI K. ME GHANATH CHOWHAN, JCIT O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE LD. CIT(A)-XII, CHENNAI DATED 16.12.20 08 FOR ASSESSMENT YEAR 1987-88. I.T.A. NO. 1958/MDS/10 2 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL OF THE AS SESSEE IS THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN HOLDING THAT TH E ASSESSEE TRUST IS A TAXABLE ENTITY WHEN THE INCOME MANDATORILY IS TO BE TAXED IN THE HANDS OF THE TRUSTEES/BENEFICIARIES ONLY. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIAL AVAILABLE ON RECORD. GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) WA S NOT JUSTIFIED IN DIRECTING THE ASSESSING OFFICER TO ASSESS THE ASSES SEE IN THE STATUS OF AN AOP IN SPITE OF THE DECISION OF THE HON'BLE MADR AS HIGH COURT IN THE CASE OF THE ASSESSEE ITSELF IN ASSESSMENT YEAR 1983-84 IN T.C. NO. 320 TO 322 OF 1997 ORDER DATED 18.9.2002. THE ASSESSEE SUBMITTED THAT THE ISSUE OF THE STATUS OF THE ASSES SEE HAS BEEN DECIDED BY THE HON'BLE MADRAS HIGH COURT AND THEREF ORE, THE LD. CIT(A) WAS NOT JUSTIFIED IN NOT FOLLOWING THE SAME AND TAKING A CONTRARY VIEW WITHOUT FINDING ANY DISTINGUISHABLE F ACTS. WE FIND THAT THE HON'BLE MADRAS HIGH COURT IN THE C ASE OF THE ASSESSEE VIDE ITS ORDER DATED 18.9.2002 PASSED IN T .C. NO. 320 TO 322 OF 1997 ORDER HAS HELD AT PARA 6 AS UNDER: I.T.A. NO. 1958/MDS/10 3 THE SHARE TO BE ALLOTTED TO THE BENEFICIARIES BEING DETERMINATE UNDER THE TRUST DEED HERE AND THE BENEFIC IARIES ALSO BEING KNOWN, THE TRIBUNAL HAS RIGHTLY HELD THAT THE COMMISSIONER WAS IN ERROR IN REVISING THE ORDER OF THE ASSESSING OFFICER ON THE GROUND THAT THE SHARES WER E INDETERMINATE AND THAT THE TRUST DEED IS VOID FOR VA GUENESS. THE SETTING ASIDE OF THE ORDER OF THE ASSESSMENT TH AT HAD BEEN MADE PURSUANT TO THE REVISIONAL ORDER WAS A NECE SSARY CONSEQUENCE OF SETTING ASIDE THE REVISIONAL ORDER. 4. WE, RESPECTFULLY FOLLOWING THE ABOVE ORDER OF TH E HON'BLE HIGH COURT, SET ASIDE THE ORDERS OF THE LOWER AUTHORITIE S AND DIRECT THE ASSESSING OFFICER TO REFRAME THE ASSESSMENT BY FOLL OWING THE ABOVE ORDER OF THE HIGH COURT. I.T.A. NO. 1958/MDS/10 4 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT ON 5 TH AUGUST, 2011. SD/- SD/- (HARI OM MARATHA) (N.S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 5 TH AUGUST, 2011. VL COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT(A)-IV, CHENNAI (4) CIT-IX, CHENNAI (5) D.R. (6) GUARD FILE