TMI Blog1981 (8) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal to draw up a statement of the case and refer the following common question said to arise from the Tribunal s combined order dt. 30th August, 1980 to the Hon'ble High Court for its opinion; "Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was right in law in holding that no error much less the error which is prejudicial to the interests of revenue has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber, 1964 vide the Trust Deed and then the settlors settled the property viz. the right to receive commission from sole selling agency and the security of Rs. 50,000 which was with the principal. The Trust, according to the assessee, was created for charitable purposes within the meaning of s. 2(15) of the IT Act, 1961. No return was filed u/s 139(1) for the asst. yr. 1971 by the assessee as it t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Poona 16,669 1,93,237 Assessment then was made by the ITO on 7th April, 1977 u/s. 143(3). Treating the assessee as charitable trust within the meaning of s. 2(15) r/w s. 11, the ITO granted exemption. Also, exemption was granted for the asst. yr. 1975-76. The intervening assessments were not made till then. The CIT caused the notice served u/s. 263 on the assessee. He was of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The CIT therefore, was of the view that the sole selling agency agreement whereby the settlors were to receive commission on the sales made in the specified areas, could have continued at the most upto the year 1969 and thereafter the Trust could not have received any income by way of commission from sole selling agency. So according to the CIT the error on the part of the ITO was that he without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the orders of the ITO. On appraisal of the evidence, the Tribunal reached the conclusion that no such error existed in the orders of the ITO and, therefore, jurisdiction u/s. 263 could not have been exercised by the CIT. Whether or not the errors as appointed out by the CIT existed in the orders of the ITO, finding on this question is purely of finding on fact and, therefore, the proposed question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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