INCOME TAX OFFICER Vs. RAMANDU TRUST
LAWS(IT)-1989-7-1
INCOME TAX APPELLATE TRIBUNAL
Decided on July 25,1989

Appellant
VERSUS
Respondents

JUDGEMENT

M.A.A. Khan, Judicial Member - (1.)THIS is an appeal by revenue from the order of Commissioner of Income-tax (Appeals), Baroda dated 22-10-1986 cancelling the levy of interest under Sections 139(8) and 217 of the Income-tax Act, 1961 (the Act) and holding the status of the respondent trust as that of an 'individual'.
(2.)The assessee is a discretionary trust settled by one Shri Raojibhai Patel on April 1,1984. The assessment year involved is 1985-86, relevant to previous year ended on 31-12-1984.
During the year under consideration the respondent earned share income amounting to Rs. 8,70,279 from registered firm of M/s. Cadila Distributors & returned net loss amounting to Rs. 6,95,422 from its sole proprietorship business carried on in the name of M/s. Rachem. The return was due on 30-6-1985 but the same was filed on 27-9-1985 at the total income of Rs. 1,74,860.

(3.)AT the assessment proceedings the respondent claimed assessment in the status of 'individual', but the ITO assessed it in the status of Association of Persons (AOP). While completing the assessment under Section 143(3) of the Act the ITO charged interest under Section 139(8) and 217 and also initiated proceedings under Section 273 for not filing the statement of advance tax,


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