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TMI Blog2017 (10) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. On the facts and circumstances of the case and in Law, the Ld. CIT (Appeals)has erred in holding that the assesse is a revocable trust and not the A.O.P.; 3. On the facts and circumstances of the case and in Law, the Ld. CIT (Appeals)has erred in holding that the assesse is not an A.O.P. since the beneficiaries had not set up the Trust, they (beneficiaries) had not come together with the object of carrying on investment in a fund which was the object of the trust and there was no inter-se agreement between the beneficiaries of the fund; 4. On the facts and circumstances of the case and in Law, the Ld. CIT (Appeals)has erred in holding that income of the assesse is taxable in the hands of contributors! beneficiaries as section 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n record as well as the orders passed by revenue authorities. Before we decide the merits of the case, it is necessary to evaluate the orders passed by Ld. CIT(A). The Ld. CIT(A) has dealt with the above grounds raised by the revenue in para no. 4 to 4.13 of its order. The operative portion of the order of Ld. CIT(A) is contained in para no. 4.9 to 4.13 of its order and the same is reproduced below:- 4.9. I have carefully considered the facts and circumstances of the case. In this case, the appellant has been formed as a Trust vide agreement dated 07.11.2008 for the purpose of making investments in companies promoting innovation in emerging technologies in India. The appellant Trust would issue units to various contributors and invest th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not come together with the object of carrying on investment in a mezzanine fund, which was the object of the trust; and there was no-.inter se agreement between the beneficiaries of the fund. 4.11. In the present case also, the Trust Deed mentions that Units shall be issued to the Contributors.-who are entitled to a specific share of the prof its. As per para 2.6 of the Trust Deed on page 15, the Trustee shall invite capital commitments of minimum Rs. 5 Crore and receive capital contributions only by way of private placement of the units in the fund to the target investors. Hence, it is a case of a determinate Trust: 4.12. It needs to be examined whether the transaction constitutes a revocable transfer u/s 61-63 of the Act. A transf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al defect and cannot vitiate the fact of the appellant being a Trust. I am of the view that the appellant is a revocable Trust and the income is taxable in the hand of the contributors / beneficiaries. Hence, no part of' the interest income could be taxed in the hands of the appellant Trust. In view of the above discussion, ground No. 1 of the appeal is allowed. After analyzing the facts, arguments, and orders passed by revenune authorities, we find that the Ld. CIT(A) was satisfied from the fact that the assessee possessing all the ingredients that constitute the assessee as a trust. The Ld. CIT(A) while coming to the conclusion had relied upon the order passed by Hon'ble ITAT in the case of M/s India Advantage Fund-VII, ITA 178/Bang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds raised by the revenue stands dismissed. Ground No. 5 5. This ground raised by the revenue is against challenging the order of Ld. CIT(A) in holding that income of the assessee is taxable in the hands of contributors/beneficiaries as per section 161(1) of the I.T. Act, 1961, and not in its own hands in status of an A.O.P. 6. We have heard the counsels for both the parties and we have also perused the material placed on record as well as the orders passed by revenue authorities. Before we decide the merits of the case, it is necessary to evaluate the orders passed by Ld. CIT(A). The Ld. CIT(A) has dealt with the above grounds raised by the revenue in para no. 5 of its order wherein the Ld. CIT(A) has categorically held that as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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