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2022 (9) TMI 309 - HC - Income TaxAssessment of income of trust - income of the Trust as taxable in the hands of the Trust or the beneficiaries - monies received by the assessee were 'perquisites' under Section 17(3) or taxable under Section 56(2) - As contended that under Section 161 of the Act, the Income of the Trust could be taxed either in the hands of the Trust or in the hands of beneficiary under Section 166 - whether Appellate Tribunal erred in law in not appreciating that the income has been offered in the hands of the Beneficiary Trusts and applicable taxes have been paid by the respective Trusts and consequently taxing the amounts which has already been taxed again in the hands of the appellant amounts to double taxation on the facts and circumstances of the case? - HELD THAT:- Having considered the very Circular No.157 [F.No.228/8/73-IT (A-II)] dated 26.12.1974 the ITAT, New Delhi has recorded in para 9 of its order the contention of the assessee therein that the income of the Trust can be taxed only once. In the result, the ITAT has dismissed the appeal filed by the Revenue challenging the order passed by the CIT(A) in that case. As per Section 161 of the Act the Trust can be assessed in its own name. Section 166 of the Act provides for assessment of income in the hands of the beneficiary. In view of unambiguous language used in the Circular clarifying the question of law and the fact that individual Trusts have filed return of income and paid the taxes, the order of remand by the ITAT directing the Assessing Officer to pass fresh orders by classifying the tax under different heads, is unsustainable - Question of law is answered in favour of the assessee and against the Revenue.
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