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TMI Blog2013 (8) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... iven in case of UTI Mutual Fund (supra) and also in the similar W.P., [2012 (3) TMI 333 - BOMBAY HIGH COURT] are still applicable and relevant in case of the assessee even after passing of the Commissioner (Appeals)'s order. Therefore, in the interest of justice this is a fit case for grant of stay. The Registry is directed to fix the appeal on out-of-turn basis on 26th June 2013, for hearing of appeals on merit. - S.A. No.158/Mum./2013, ITA No. 3986/Mum./2013 - - - Dated:- 24-5-2013 - Shri Rajendra Singh And Shri Amit Shukla,JJ. For the Petitioner : Mr. S. E. Dastur a/w Mr. Madhur Agrawal For the Respondent : Mr. Anen Kumar ORDER Per Amit Shukla, J.M. In all the aforesaid stay applications, the issues involved are c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of the trust by treating the trust as Association Of Persons (AOPs). This, inter-alia, means that all the mutual fund beneficiaries were treated as AOPs. He has invoked the provisions of section 161(1A) and has computed the total income of Rs. 21,49,72,486, chargeable to tax at the maximum margin rate. The learned Commissioner (Appeals) partly allowed the assessee's appeal after enhancing the income of interest receivable of the month of March. The learned Commissioner (Appeals) has confirmed the reasoning of the Assessing Officer that the assessment has correctly been made by treating the trust as AOP. 3. Before us, the learned Sr. Counsel, Mr. S.E. Dastur, representing the assessee, narrating the entire facts submitted that the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been brought by the Finance Act, 2013, whereby special tax regime has been brought to facilitate the securitisation process and in case the investor is the trust or mutual funds then the same are exempt from taxation. Even though this amendment has come w.e.f. 1st June 2013 but this shows that the legislature did not intend the mutual funds who are investors in the trust as taxable entity. Lastly, he submitted that there was a clear cut case of diversion of income by overriding title because the income received by the trust as per the statutory guidelines belonged to the mutual funds. Therefore, the trust cannot be held liable for taxation. Lastly, he submitted that the assessee's case is not covered by section 161(1A) but covered under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uation, stay should be granted. We find that the observations of the Hon'ble Jurisdictional High Court as given in case of UTI Mutual Fund in W.P. 523 of 2013, vide judgment dated 6th March 2013, and also in the similar W.P., vide judgment dated 14th March 2012, are still applicable and relevant in case of the assessee even after passing of the learned Commissioner (Appeals)'s order. Therefore, in the interest of justice, we are of the considered opinion that this is a fit case for grant of stay. Consequently, we order as under:- i) The entire outstanding demand for the impugned assessment year is hereby stayed for a period of six months or passing of the order by the Tribunal in appeals, whichever is earlier; ii) The Registry is direct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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