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TMI Blog2018 (2) TMI 1370X X X X Extracts X X X X X X X X Extracts X X X X ..... ell into the hands of the assessee. So, when the AO has exercised his option once by taxing all the 12 trusts duly described in preceding para no.6, it is not open to the assessing authority to assess the same income for that assessment year in the hands of the other person i.e. the beneficiary of the trusts. - Decided against revenue. - ITA No.2919/Del./2011, ITA No.2931/Del./2011 And ITA No.2932/Del./2011 - - - Dated:- 19-2-2018 - SHRI G.D. AGRAWAL, PRESIDENT AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The Assessee : Shri Vidur Puri, CA For The Revenue : Shri Ravi Kant Gupta, Senior DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : Since common questions of facts and law have been raised in all the aforesaid appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his length of service with the employer and current salary. The trust deed no where mentioned that the income of the trust was to be distributed on the complete discretion of the trust; ( iii) Holding that the assessee's case is covered under section 86 of the IT Act and that section 56(2)(vi) does not over ride the provisions of section 86, not consider4ing the fact that section 86 read with section 67 A, deals in share of income received by a member of association of persons/ body of individuals and the assessment of the Trust stands on a different footing from that of an AOP. Moreover, no proof is there on record that the trust had paid taxes at the maximum marginal rate or any higher rate on its whole income. Hence, the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 6. Undisputedly, the employer of the assessees, namely, M/s. Lintas India Pvt. Ltd., a public limited company have formed 12 trusts for the benefit and welfare of the employees as per trust deeds available at pages 71 to 214 of the paper book - 2. It is also not in dispute that the assessee has received aforesaid amounts from 12 employees welfare trusts. It is also not in dispute that the 12 trusts have earned the income and paid the tax thereon to the following effect :- Name of trust Income returned (Rs.) Income Tax paid (Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also not in dispute that assessees, Shri Anaam Mishra, Shri Ashok Dhadwal and Shri Debapriya Dam has received an amount of ₹ 62,61,745/-, ₹ 40,36,071/- and ₹ 65,46,327/- respectively out of the remaining income left with the trusts after payment of the tax. It is also not in dispute that the assessees are beneficiaries of the 12 discretionary trusts who have already paid the income-tax on its income and then distributed the balance amount amongst its beneficiaries out of capital gains out of sale of shares after retaining some amount in its corpus for its expenditure. 8. The ld. DR for the Revenue challenging the impugned orders contended that the amount received by the assessee from the discretionary trusts is taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trustees and the beneficiaries, instances have come to the notice of the Board of such double assessment 2. According to the Scheme of the 1961 Act, even as it was under the 1922 Act, the general principle is to charge all income only once. The Board desire to reiterate the earlier instructions in this regard. In order that there is no loss of revenue, the Income-tax Officer should keep this point in view at the time of raising the initial assessment either of the trust or the beneficiaries and adopt a course beneficial to the revenue. Having exercised his option once, it will not be open to the Income-tax Officer to assess the same income for that assessment year in the hands of the other person (i.e., the beneficiary or the trust ..... X X X X Extracts X X X X X X X X Extracts X X X X
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