9911796707
TMI Blog2017 (5) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... tus of the Appellant is Association of Persons (AOP) and the deduction u/s 54F is applicable only to 'Individual' or 'HUF'. b) The learned CIT(A) failed to take into consideration that the Appellant is a Specific Trust which was incorporated for the benefit of a sole Beneficiary (Ms. Vidushi Somani), who is an 'Individual' and therefore the Trust/Trustee are merely Representative Assessees u/s. 161, whose status is dependent on the status of the ultimate Beneficiary. 2. Without prejudice, the learned CIT (A) erred in not adjudicating the other grounds of appeal on merits by stating that the other grounds, being consequential, are dismissed. While the appellant had a case on merits and the same was argued before CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowable only to individual or HUF and not to any other person. The present assessee being specific trust, it was held by the AO that it is not eligible for deduction u/s. 54F and disallowed the same. The AO further went on to discuss that the possession of the flat was not taken within 3 years from the date of transfer and therefore the appellant was not eligible for deduction u/s. 54F. 4. Upon assessee's appeal Ld. CIT-A confirmed the action of the A.O as regard holding that assessee being a AOP cannot be granted benefit of section 54F. She distinguished the decision relied upon by the assessee's counsel. She placed reliance upon the order of Hon'ble Punjab & Haryana High Court in the case of Raghunath Dass Sethi Vs. CIT 277 ITR 341. She ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of accepting of returns. He submitted that the same cannot be treated as direction to make assessment in a particular manner. 7. Upon careful consideration we find that the issue before us is as to whether the assessee trust, which is for the sole benefit of an individual, will be entitled to deduction u/s. 54F or not, when its status is that of A.O.P. As per Section 54F the benefits of this section is available to individual or Hindu undivided family (HUF). Hon'ble jurisdictional High Court in the case of Mrs. Amy F. Cama (Supra) has elaborately considered the same issue. The jurisdictional High Court was dealing with assessee trust's claim for deduction for purchase price of the flat from capital gain as per Section 54 of the Act. The H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distinction referred by the Ld. D.R is devoid of cogency. Furthermore, Hon'ble Gujarat High court in the case of Niti Trust (Supra) has similarly granted benefit of assessment of a trust in the capacity of a individual. For this proposition Hon'ble High Court had relied upon the decision of Hon'ble Gujarat High Court in the case of CIT vs. Deepak Family Trust to 211 ITR 575 and Calcutta High Court decision in the case of CIT vs. Shri Krishna Bandar Trust 201 ITR 989. 9. From the above case laws it is amply clear that by virtue of Section 161 of the I.T. Act the representative assessee is subject to the same duties, responsibilities and liabilities as if the income was received by him beneficiary, and whatever benefits the beneficiary will ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
