9911796707
TMI Blog1994 (12) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, Memorial Hall Road, and Nos. 511 and 512, Mint Street, Madras, should not be assessed in the hands of the assessee ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal's finding that the assessee was not the owner of the properties is based on valid and relevant materials and is a reasonable view to take on the facts of the case ? " The assessee is a trust constituted under a deed dated August 14, 1951, under which five trustees were appointed to manage and administer certain properties. The properties were to be held for the benefit of the Chemists and Druggists Association and any surplus income available was directed to be utilised for the purpose of the association. The assessee filed returns be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Memorial Hall Road and another in Mint Street in favour of the trust. According to the trust deed, the legal title in the properties was vested in the trust and the Chemists and Druggists Association were the beneficiaries of the trust. The income arising out of the trust was applied for the benefit of the association. Therefore, according to learned standing counsel, when the legal title over the properties was vested in the hands of the trust, it is not possible to make an assessment with regard to the income from the property in the hands of the beneficiaries which is the Chemists and Druggists Association. Hence, learned standing counsel submitted that the Appellate Tribunal was not correct in directing the Assessing Officer to asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n case the assessment is made on the trust, then a direction can be given to the Assessing Officer to assess the income from the trust as assessable in the hands of the beneficiaries. It remains to be seen that the two properties in question were purchased by a deed of sale dated June 5, 1950, by the board of trustees of the Madras Chemists and Druggists Association represented by the governing body consisting of (1) Lalchand Dhadha, (2) Venkatapathi Naidu, (3) Mohanlal Pandia, (4) Wilfred Periera, and (5) R. S. K. Swamy. This board of trustees, after purchasing these properties, dedicated these properties to the benefit of the Madras Chemists and Druggists Association under a trust deed dated August 14, 1951. Clause 1 of the trust deed s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... beneficial owner of the net surplus income from the property, as provided for therein for the purpose of the said association. " Therefore, a plain reading of the abovesaid trust deed would go to show that the legal title in the abovesaid two properties vests in the trust and not in the association. Therefore, the income arising from these two properties should be assessed in the hands of the trust and not in the hands of the association. In the present case, the Chemists and Druggists Association Building Trust, Madras, is the assessee. The assessee filed the returns for the assessment year under consideration and on the basis of these returns, the Income-tax Officer assessed the property income in the hands of the assessee which is the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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