9911796707
TMI Blog1978 (3) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... ch the petitioners are the trustees is a public charitable trust, the income of the said trust was entirely exempt. The said trust had claimed that it had received as gift certain shares from a private trust and, therefore, the taxes that were deducted at source in respect of the dividends on the shares which had been gifted to the public charitable trust, were refunded to the trust of which the petitioners are the trustees. It transpired or came to the knowledge of the Income-tax Officer, according to him, that the gift by the private trust in favour of the public trust was void as the private trust had no power to make the gift. Therefore, the refund of the taxes deducted at source given to the public charitable trust, according to the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een received in pursuance of a valid gift from Raja Baldeodas Birla Santatikosh Trust. Information was subsequently received by respondent No. 3 under I.A.C., Survey Range, Memo. No. 385/Survey/8E/88/64-65 dated March 23, 1973, enclosing a D.O. letter No. D.I. (Inv)/SVB/31/Tech. (1)/72-73/13 dated March 14, 1973, of Director of Inspection (Inv.) addressed to the Commissioner of Income-tax, West Bengal, Calcutta, stating that enquiries made by the directorate had revealed that the trustees of the Santatikosh Trust had no powers to make the gift of shares to the Birla Janakalyan Trust. The shares were received by the Santatikosh Trust by a deed of settlement executed by Shri Jugal Kishore Birla dated May 20, 1943, but the settlement deed did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er-assessed ; or (iii) has been assessed at too low a rate ; or (iv) has been made the subject of excessive relief; or (v) excessive loss or depreciation allowance has been computed. As the trust of which the petitioners are the trustees is a public charitable trust, its income was not assessable to tax. Therefore, there is no question of any income escaping assessment because the income was not assessable, nor was there any question of any under-assessment or assessment at too low a rate. In this case, there is also no question of excessive loss or depreciation allowance being computed. If that was the position, then the only ground on which the assessment could have been reopened was that the income chargeable to tax had been made the sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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