9911796707
TMI Blog1997 (7) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmed is untenable in the eyes of law because it is a common experience that during the course of search family members of any family who would under great mental strain tension and force, if given a statement, it would be non-coherent. Thus, this type of statement should not be taken as a conclusive or clinching evidence to hold that income earned by the assessee's wife from tailoring work really belonged to the assessee. He further argued that learned Dy. CIT(A) had ignored the evidence produced by the assessee in the form of confirmation letters given by various persons indicating that the assessee's wife was in fact doing tailoring work. He further referred to the various decisions which have been mentioned in this respect. 5. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g grounds have been raised: 1. The learned DC(A) has erred in law on facts in deleting the income of Sarvodaya Family Trust from the total income of the assessee. 2. The learned DC(A) has also erred in law and on facts in deleting the income of the wife of the assessee amounting to Rs. 6091 from the total income of the assessee. 3. The learned DC(A) has erred in law and on facts in deleting the interest charged under s. 139(8) and under s. 217. 9. The facts regarding the first ground are as follows. The AO found that the assessee was accountant in the Pravin Corporation Group of cases and in that group other bogus trusts were created and the same were proposed by order of Dy. CIT (Asstt.) S.R. 6 Ahmedabad in the case of Shri Nar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment of the trust was not on protective basis and therefore, it was argued that it amounts to double taxation to tax the trust separately and to include in the income of the assessee. It was further pointed out that beneficiaries had also been taxed in respect of their shares of profits as beneficiaries of the trust. It was further pointed out that all the major beneficiaries of the trust were examined and they had categorically stated that they were beneficiaries and they were having specific shares. 10. The learned Dy. CIT(A) opined that when the trust has been assessed from 1980-81 onwards and no action was taken by the Department under s. 263 or otherwise to cancel the order of the trust which was passed under s. 143(3). It conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e income of the beneficiary has been assessed in the hands of the beneficiary. No material has been brought to record to show that the assessee was benefited out of the income shown by the trust. In these circumstances we confirm the order of the DC(A). 13. The facts of the second grounds are as follows: The assessee had shown income from tailoring, livestock breading and interest. The AO had added all these income in the hands of the assessee. The learned AO was of the opinion that the source of investment by the wife in respect of income from livestock breading and from interest were properly explained and the wife was also assessed on these income in subsequent years against which no action was taken by the Department to cancel the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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