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2018 (4) TMI 1831 - AT - Income TaxAssessment of trust - Assessment in hands of the beneficiaries - Whether income from deposit was not correctly admitted in the hands of the beneficiaries or not admitted, it has to be assessed in the hands of the assessee trust? - HELD THAT:- Observation of the AO in the show cause notice that the intention of the ITAT is to grant relief only in respect of interest income which is offered for taxation by the beneficiaries is not correct. This Tribunal is of the considered opinion that the intention of the ITAT in the order [2017 (6) TMI 1331 - ITAT CHENNAI] is in respect of the entire income received from various sources and distributed to investors has to be taxed as such in the hands of the beneficiaries, therefore, there is no need for any exclusion in respect of the income admitted by the beneficiaries or not admitted by the beneficiaries. Since the details of the income and expenditure is not available in the Profit & Loss account or in the document filed before this Tribunal, this Tribunal remitted back the matter to the file of the Assessing Officer for a limited verification to collect information from beneficiaries and allow pass through status in the hands of the assessee. AO misunderstood the direction of the Tribunal by picking up same words here and there. Hence, this Tribunal is of the considered opinion that the Assessing Officer is not correct in saying that in case the income is not admitted / incorrectly admitted, it has to be assessed in the hands of the assessee. This Tribunal is of the considered opinion that whether the income is admitted by the respective beneficiaries or not, since pass through status was given to the assessee-Fund, the entire income has to be assessed only in the hands of the beneficiaries and not in the hands of the trust / Fund. The order of this Tribunal is modified / clarified accordingly.
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