9911796707
TMI Blog1991 (7) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... and implemented the order of the Income-tax Appellate Tribunal in I. T. A. No. 427 of 1974-75 dated August 13, 1975, and (2) that, while giving effect to the above order of the Tribunal, which had become final, the Income-tax Officer could not have recomputed the total income of the assessee in the manner in which he did it, vide the impugned order. " The assessee is a trust which derives income from property, interest and share income from a firm, Messrs. J. K., Calcutta. It had claimed exemption under section I l(1)(a) of the Income-tax Act, 1961. The Incometax Officer did not allow the exemption claimed by the assessee. Therefore, the assessee went in appeal and the Appellate Assistant Commissioner held through his order dated Septe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner, the assessee went to the Income-tax Appellate Tribunal which reversed the order of the Appellate Assistant Commissioner through its order dated August 13, 1975, and held that the assessee's contention did not raise any fresh grounds in appeal and that the Appellate Assistant Commissioner was wrong in not entertaining the grounds raised by the assessee. However, the Income-tax Appellate Tribunal, through its order dated August 13, 1975, set aside the order passed by the authorities below and asked the Income-tax Officer to pass an order under section 251/154 of the Income-tax Act, 1961, in the light of the observations made in the judgment. (annexure 'D' of the paper book). Thereafter, the Income-tax Officer, through his order dated F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned counsel for the Department has contended before us that the Income-tax Appellate Tribunal did not record any finding and the Income-tax Officer was justified in making the fresh assessment on the assessee. According to him, the casual observation in the order of the Appellate Tribunal dated August 13, 1975, would not help the assessee and the referred questions should be answered in favour of the Department. . . . Learned counsel for the assessee drew our attention to paragraph 3 of the Tribunal's judgment dated August 13, 1975, wherein a plea has been raised to the effect that the entire income of the trust was attached under section 226(3) and thus it was not possible for the trust to utilise its income for charitable purposes. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee, it could not be treated as income of the assessee and no question of spending it on charitable purposes would arise. The word " finding " has been interpreted in a number of cases such as Pt. Hazari Lal Hatia v. ITO [1960] 39 ITR 265; AIR 1960 All 97 and ITO v. Murlidhar Bhagwan Das [1964] 52 ITR 335; AIR 1965 SC 342 perusal of the judgment of the Income-tax Appellate Tribunal dated August 13, 1975, indicates that the Tribunal came to the conclusion that, unless the trustees actually and physically received the income of the trust, they cannot be expected to apply it on the objects of the trust. It is well-known by now that an erroneous decision operates as res judicata between parties. (See Mohanlal Goenka v. Benoy Kishna Mukherje ..... X X X X Extracts X X X X X X X X Extracts X X X X
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