9911796707
TMI Blog1984 (2) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... above. Among other clauses there was a clause in the trust deed that the reustees were to divide the income of the trust fund among the beneficiaries in equal shares. 3. The ITO, while making the assessment of the trust in the status of AOP, did not raise any demand but distributed the income so computed among the beneficiaries in equal was of the opinion that the assessment so made by the ITO were erroneous and prejudicial to the interests of revenue inasmuch as the assessee trust had not been taxed as a unit. He therefore, initiated proceedings under s. 263 of the Act and issued a show cause notice in reply to which it was contended on behalf of the assessee that the trustees could not be assessed in the status of AOP as the shares of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted in K. T. Doctor vs. CIT (1980) 15 CTR (Guj) 43 : (1980) 124 ITR 501 (Guj) and the decision of the Madhya Pradesh High Court in the case of Karelal Kundanlal Trust reported in 16 (1984) Taxman 146 (MP). The ld. Departmental Representative, on the other hand, strongly supported the order of the CIT and relied on the decisions reported in N. V. Shanmughams Co. vs. CIT (1917) 81 ITR 310 (SC). Deccan Wine Gen. Stores vs. CIT (1977) 106 ITR 111 (AP), CIT vs. Harivadan Tribhuvandas (1977) 106 ITR 494 (Guj), Gopal Chand Sen vs. ITO Ors. (1917) 109 ITR 820 (Cal) and Meera Co. vs. CIT (1979) 8 CTR (P L) 28 : (1979) 120 ITR 564 (P L). 5. Having heard the submissions of both the parties and after considering the facts of the case we are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received by the assessee as trustee were determinate, the assessment on the assessee should be made as a separate assessment for each of the persons on whose behalf the income was received by the assessee. The cases relied on by the ld. Counsel for the assessee also support the view taken by the Calcutta High Court in the aforesaid case. That being the position, it has to be held that the CIT was not justified in invoking the provisions of s. 263 of the Act on the facts of the present case. We therefore, set aside the order of the CIT and restore the order of the ITO for each of and three assessment years under consideration. In view of what we have discussed above we consider it unnecessary to discuss the cases relied on by the ld. Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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