ITO, Bangalore v. Smt. Indira Rama Rao, Bangalore

ITA 251/BANG/2009 | 2001-2002
Pronouncement Date: 29-01-2010 | Result: Dismissed

Appeal Details

RSA Number 25121114 RSA 2009
Bench Bangalore
Appeal Number ITA 251/BANG/2009
Duration Of Justice 10 month(s) 6 day(s)
Appellant ITO, Bangalore
Respondent Smt. Indira Rama Rao, Bangalore
Appeal Type Income Tax Appeal
Pronouncement Date 29-01-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 29-01-2010
Date Of Final Hearing 30-12-2009
Next Hearing Date 30-12-2009
Assessment Year 2001-2002
Appeal Filed On 23-03-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE B BENCH BANGALORE BEFORE SHRI SHAILENDRA KUMAR YADAV JM AND SHRI A. MOHAN ALANKAMONY AM ITA NO. 251(BANG.)/2009 (ASSESSMENT YEAR : 2001-02) THE INCOME-TAX OFFICER WARD-8(2) 1/1 SAMPIGE ROAD BANGALORE APPELLANT VS SMT. INDIRA RAMA RAO 347 NEAR JANATHA BAZAAR SADHASHIVNAGAR BANGALORE. RESPONDENT REVENUE BY : SMT.V.S. SREELEKHA APPELLANT BY : SHRI S. VENKATARAMANI O R D E R PER SHAILENDRA KUMAR YADAV JM: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) ON THE FOLLOWING GROUNDS; 1. THE CIT(A) HAS ERRED IN HOLDING THAT THE STATUS OF THE ASSESSEE AS INDIVIDUAL IGNORING THE FACT THA T THEIR SHARES ARE UNDETERMINATE AND UNASCERTAINABLE 2. THE CIT(A) ERRED IN HOLDING THAT SMT.INDIRA RAMA RAO IS BENEFICIARY NO.1 AS THE HOLDER FOR LIFE . 3. THE CIT(A) ERRED IN HOLDING THAT SMT.INDIRA RAMA RAO IS BENEFICIARY NO.1 AS THE HOLDER FOR LIE IGNORING THE FACT THAT THERE WERE OTHER BENEFICIARI ES ITA NO.251(B)/09 2 I.E. SRI K.R.SHANKAR S/O SMT.INDIRA RAMA RAO AND CHILDREN YET TO BE BORN TO SRI K.R.SHANKAR 4. THE CIT(A) HAS NOT APPRECIATED THE FACT THAT TH E CLAUSE IN THE TRUST DEED RESTRICTED THE INTEREST OF SMT.INDIRA RAMA RAO BENEFICIARY NO.1 TO THE EXTENT OF ALLOWING HER TO RESIDE IN AND ENJOY THE RENT FRO M THE SCHEDULED PROPERTY AND NOTHING MORE THAN THAT. 5. THE CIT(A) ERRED IN HOLDING THAT THE ASSESSEE H AS TO BE AXED U/S 161 IGNORING THE FACT THAT THE BENEFICIARIES WERE UNDETERMINED. 2. ACCORDING TO AO THE INCOME FROM CAPITAL GAIN ARI SE FROM THE SALE OF IMMOVABLE ASSETS FOR THE YEAR UNDER CONSIDE RATION. THE ASSESSEE IS A BENEFICIARY NO.1 OF M/S INDIRA RAMA R AO TRUST IN SHORT TRUST IS NOT IN DISPUTE. THE ASSESSEE IS A SOLE B ENEFICIARY OF THE TRUST THROUGHOUT HER LIFE BY VIRTUE OF WHICH SHE IS ENTIT LED TO THE BENEFITS ARISING FROM ITS ACTIVITIES SO THE ASSESSMENT OF T HE TRUST SHOULD BE MADE IN THE STATUS OF INDIVIDUAL BY VIRTUE OF SECTI ON 161 OF THE IT ACT. THE AO REJECTED THE CLAIM AND HELD THAT THE TRUST S HOULD BE ASSESSED IN THE STATUS OF ASSOCIATION OF PERSONS. 3. THE ASSESSEE WENT IN APPEAL AGAINST THE PROTECTI VE ASSESSMENTS MADE IN HER CASE BEFORE THE CIT(A) WHO OBSERVED THAT AS A TRUST SMT.INDIRA RAMA RAO WAS HELD AS ASSESSABLE AS INDIVIDUAL IN HIS ORDER DATED 06-01-2009 AND CONSEQUENTLY THE CAPITAL GAINS AND BUSINESS INCOME ASSESSED BY THE AO WAS NOT ELIGIBLE TO TAX UNDER THE ITA NO.251(B)/09 3 RELEVANT HEADS. THE ASSESSMENT MADE IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEARS DO NOT SURVIVE. 4. NOTHING CONTRARY WAS BROUGHT TO OUR KNOWLEDGE S O WE ARE NOT INCLINED TO INTERFERE WITH THE FINDINGS OF CIT(A) W HO HAS GRANTED THE RELIEF TO THE ASSESSEE BY HOLDING THAT THE TRUST BE ING ASSESSABLE AS INDIVIDUAL. THE CIT(A) HAS RIGHTLY GRANTED RELIEF TO THE ASSESSEE. WE UPHOLD THE SAME. 5. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE (A. MOHAN ALANKAMONY) ( SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE: BANGALORE DATED: AM* COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3. CIT(A) 4. CIT 5. DR 6. GF(BLORE) 7. GF(DELHI) BY ORDER AR ITAT BANGALORE