9911796707
TMI Blog2001 (3) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent in spite of service having been effected before May 15, 1998. The Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, on an application moved by the Commissioner of Income-tax, Jodhpur, under section 256(1) of the Income-tax Act, 1961, has referred the following question of law arising out of its order in I.T.A. No. 1773 and 1817/JP of 1991, relating to the assessment year 1989-90 for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 71 and has held that the assessee diverted profits in different sums stated in the assessment order to the aforesaid persons, added the same to the income of the assessee which amounted in total Rs. 1,08,471. These additions were confirmed by the Commissioner of Income-tax (Appeals). The Tribunal though found that all the transactions are clear cases of diversion of profits but held that so far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on a different issue is not relevant for our purposes. However, to put the record straight, the Tribunal rejected the appeal of the Revenue and partly allowed the appeal of the assessee as aforesaid. We are of the opinion that in view of the decision of the Supreme Court in Jain Brothers v. Union of India [1970] 77 ITR 107 it can be no more in doubt that the assessment of different persons in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of the income and have also been assessed on the basis of declaration submitted by them. We are not concerned with the remedies which the other person may follow. Accepting the assessee's contention would result in the startling consequence of accepting that where a person designedly diverts his profits to other persons to reduce his tax burden, he can escape his actual tax burden by indu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
