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2023 (4) TMI 1108 - ITAT DELHIReopening of assessment u/s 147 - Assessment of trust - undisclosed rental income received by the assessee trust - assessee trust has not filed return of income for the AY 2010-11 and, therefore, there is escapement of income in respect of rental income received by the assessee trust from the property - HELD THAT:- On perusal of the Income tax returns of the beneficiaries which were also available with the Assessing Officer at the time of reassessment proceedings as has been recorded a finding in the reassessment order that the assessee has produced the Income tax returns of the beneficiaries. As noticed that the beneficiaries have shown their share of rental income of the property held under the trust and in such case there is no escapement of income by the assessee trust as the trust was formed as a specific trust for the benefit of the beneficiaries of the family of Late Shri Gyan Chand Khanna. There is a direct live link between the rental income received by the trust and the income shown by the beneficiaries in the respective returns as per their respective share of rental income as specified in the trust deed and, therefore, there is no escapement of income at all. We hold that the reopening of the assessment is bad in law. We set aside the order of theCIT(Appeals) and quash the reassessment made by the Assessing Officer u/s 143(3) r.w.s. 147 - Decide in favour of assessee.
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