COMMISSIONER OF INCOME TAX vs. SUBHASH FAMILY TRUST

ITR/27/1994HC GujaratGJHC24020105199407 November 2001Author: HONOURABLE MR. JUSTICE MOHIT S. SHAH,HONOURABLE MR. JUSTICE D.A.MEHTA2 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that the Tribunal was correct in law in its findings. The Court relied on its own prior decision dated 11.11.1998 in Income-tax Reference No. 111 of 1984, which dealt with an identical controversy for the assessee's own case. That decision had examined the terms of the trust deed and concluded that the assessee-trust is a specific trust. Since no distinguishing features were brought on record by the Revenue for the assessment year 1983-84, the High Court found no reason to deviate from its earlier ruling. Consequently, the Court held that the provisions of Section 164 of the Income-tax Act, 1961, were not applicable. The question referred to the Court was answered in the affirmative, in favour of the assessee and against the Revenue. The reference was disposed of accordingly.

What were the facts?

The Income-tax Appellate Tribunal (ITAT) referred a question to the High Court of Gujarat at Ahmedabad at the instance of the Commissioner of Income Tax (Revenue). The assessment year in question is 1983-84. The dispute concerns whether the assessee trust is a specific trust and if Section 164 of the Income-tax Act, 1961, is applicable. The ITAT had previously ruled in favour of the assessee for assessment years 1981-82 and 1982-83. The High Court noted that the Revenue had not presented any distinguishing features for the current assessment year. The assessee, Subhash Family Trust, was served but did not appear.

What were the issues?

1. Whether the Appellate Tribunal is right in law and on facts in holding that the assessee trust is a specific trust, and further holding that the provisions of section 164 were not applicable in the instant case? Assessee Contentions: The judgment does not record any specific contentions made by the assessee. However, the Tribunal's prior orders in the assessee's own case for assessment years 1981-82 and 1982-83, which held the trust to be specific and Section 164 inapplicable, were relied upon. Revenue Contentions: The Revenue, represented by Mr. Akil Kureshi, relied on a decision of the High Court dated 11.11.1998 in Income-tax Reference No. 111 of 1984, concerning the assessee's own case for an identical controversy. This prior High Court decision had held the assessee-trust to be a specific trust after considering the trust deed.

Which sections of the Income-tax Act were involved?

Section 164

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 27 of 1994

For Approval and Signature:

Hon'ble MR.JUSTICE M.S.SHAH and Hon'ble MR.JUSTICE D.A.MEHTA

============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements?

2.

To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement?

4.

Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder?

5.

Whether it is to be circulated to the Civil Judge? : NO

The order continues below.

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