S. Kannan, Accountant Member - (1.) THE assessees before us are private discretionary trusts. A single common issue arises for consideration in these cases. And that is whether the assessee-trusts are entitled to deduction under Section 80L of the Income-tax Act, 1961.
(2.) The Assessing Officer took the line, first, that the status of the assessees must be taken as that of 'Association of Persons' and, secondly, that the assessees are not entitled to deduction under Section 80L of the Act. Thereupon, the assessees moved the CIT (Appeals), contending that their status must be taken as that of 'Individual' and that consequently, they were entitled to deduction under Section 80L of the Act. In this regard, reliance was placed on the following orders of the ITAT : JUDGEMENT_7974_TLIT0_19930.htm The CIT (Appeals) held that the status of the assessees must be taken as that of "artificial juridical person" and that consequently, they were not entitled to deduction under Section 80L of the Act. In this regard, he was impelled by the consideration that while Section 2(31) of the IT Act, 1961 defined the term "person" as including "every artificial juridical person, not falling within any of the preceding sub-clauses", the 1922 Act did not contain sucha mention of "artificial juridical person" and it was, therefore, that under the old Act, the assessments of even deities had to be completed in the status of 'individual', although the expression 'Individual' should clearly apply to natural or living persons. Thus, he confirmed the denial by the Assessing Officer of the assessee's claim for deduction under Section 80L of the Act, though for different reasons.
(3.) IT is in these circumstances that the assessees are now before us.;