Interest u/s 220(2) in case of protective assessment.

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..... issue had arisen in the case of an individual who was the sole beneficiary of a trust. The trust and the beneficiary were separately assessed to tax. Since the individual was the sole beneficiary, the income from the trust was assessed in his hands. At the same time a protective assessment was made on the trust as the beneficiary had contended that the income of the trust was not assessable in hi .....

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..... t made in the case of beneficiary should be deemed to have been made in the case of the trust and the date of payment should be taken as the original date when the demand was paid and not the date when the refund from one case was adjusted against the demand in the other case. 3. The Board are advised that having regard to the principle of income being subject to tax only once, if tax is already .....

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..... . Secondly, the assessee making the original payment expressly forgoes his claim of any interest payable by the Department. It may be clarified that this position will obtain only in situations of representative assessees/beneficiaries or HUF/Individuals. 5. The aforesaid instructions may be brought to the notice of all the field officers working in your charge. - Circular - Trade Notice - Pub .....

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