9911796707
TMI Blog1993 (3) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... s amounting to Rs. 60,650 B is assessable in the hands of the trustees and not allocable amongst the nine beneficiaries ?" The assessee is a trust and has been assessed in the status of an association of persons. During the accounting period relevant to the assessment year 1973-74, it had sold one of the properties of the trust thereby making a capital gain of Rs. 60,650. Besides capital gain, during the relevant assessment year the trust had also income by way of interest on securities amounting to Rs. 650 and interest from other sources amounting to Rs. 9,517. There is no dispute about the fact that under the terms of the trust deed, the shares of the nine beneficiaries in the income thereof are determinate and known. The Income-tax Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the assessee-trust. Learned counsel for the assessee submits that the Tribunal was not justified in making a distinction between incomes falling under different heads for the purpose of application of section 161 of the Act. According to learned counsel, in the instant case, there is no dispute that section 161 of the Act is applicable, the beneficiaries are known and their shares are determinate and it is in that view of the matter that the Income-tax Officer himself has allocated the income for the purpose of assessment amongst the nine beneficiaries instead of assessing the same at the maximum marginal rate. That being so, it is contended that there was no justification for treating the capital gain differently which also was adm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any income in respect of which the person mentioned in clause (iv) of sub-section (1) of section 160 is liable as representative assessee consists of, or includes, profits and gains of business, tax shall be charged on the whole of the income in respect of which such person is so liable at the maximum marginal rate : Provided that the provisions of this sub-section shall not apply where such profits and gains are receivable under a trust declared by any person by will exclusively for the benefit of any relative dependent on him for support and maintenance and such trust is the only trust so declared by him. (2) Where any person is, in respect of any income, assessable under this Chapter in the capacity of a representative assessee, he sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down in the Act". Section 5, which deals with the scope of total income, provides, inter alia, that it includes all income from whatever source derived. Income for the purpose of charge of income-tax and computation of total income has been classified in section 14 of the Act under the following heads A. Salaries B. Interest on securities C. Income from house property D. Profits and gains of business or profession E. Capital gains F. Income from other sources Evidently, capital gain is also one of the heads under which income has been classified. Section 45(1) of the Act provides that "any profits or gains arising from the transfer of a capital asset effected in the previous year shall, save as otherwise provided in sections 53 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing with computation of advance tax in section 209, it has been clearly provided that out of the total income of the latest previous year in respect of which the assessee had been assessed by way of regular assessment, the amount of capital gains, if any, included in such income shall be excluded. These provisions leave no scope for doubt that wherever the Legislature intended to exclude capital gain from "income" it has specifically done so. In section 161, there is no such exclusion. To read such an exclusion will require the reading of the word "income" as "income other than the capital gain" which will amount to adding words to the statute which is not a permissible mode of interpretation of statutory provisions. Under the circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
