1993 (3) TMI 151 - AT - Income Tax

Summary

Issues:
1. Interpretation of the status of assets left by Late H.H. Sawai Man Singh Ji.
2. Inclusion of share in income from assets in the assessment of the assessee.
3. Rejection of claim regarding the existence of a Bigger HUF.
4. Discrepancy between the Tribunal's decision and the Department's claim.
5. Application of provisions under section 153(3)(ii) and Explanation 3 of the Income-tax Act, 1961.

Analysis:

1. The primary issue in this case revolves around the interpretation of the status of assets left by Late H.H. Sawai Man Singh Ji. The assessee, one of the heirs, claimed that the late individual held assets as the Karta of a Bigger HUF, while the revenue rejected this claim. The Tribunal accepted the heirs' claim, leading to a reference before the Hon'ble High Court on the existence of the Bigger HUF.

2. The second issue concerns the inclusion of the share in income from the assets in the assessment of the assessee. The assessing officer initially included this share, subject to rectification, but the Commissioner (Appeals) and the Tribunal later deleted this inclusion, upholding the appellate order.

3. Another issue arises from the rejection of the claim regarding the existence of the Bigger HUF by the revenue, which was contrary to the Tribunal's decision. The controversy lies in whether the status of the Bigger HUF was rightly considered by the Tribunal as claimed by the heirs or as an individual as asserted by the Department.

4. The discrepancy between the Tribunal's decision and the Department's claim is highlighted through the comparison with previous orders and decisions. The Tribunal's resolution of the controversy was based on the existence of the Bigger HUF, which could impact the assessment of smaller HUFs within it. The current reference application questions the Tribunal's interpretation of the status of the Bigger HUF.

5. The final issue involves the application of provisions under section 153(3)(ii) and Explanation 3 of the Income-tax Act, 1961. The assessee's counsel argued against referring the question to the High Court, citing the provisions that allow for the modification of assessments without unnecessary references. The Tribunal rejected the application, emphasizing the authorities' power to modify assessments based on future court decisions without the need for a reference.

In conclusion, the Tribunal rejected the reference application, emphasizing the authorities' power to modify assessments based on future court decisions without additional references, resolving the issues surrounding the interpretation of the status of assets, inclusion of income share, rejection of the Bigger HUF claim, and the application of relevant statutory provisions.