TMI Blog2015 (8) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... s that in the event of the trust vacating the building in future, the trustee shall compensate the trust for the value for the building in question. De hors this agrement, there is nothing to show that there was any manner of use of application of the income or property of the Trust to the person set out in sub section 13 (1) (3) (c) of the Act. It is only when there is an application of income or any part of the property or building directly or indirectly put to use for the benefit of person referred to above, the provision will get attracted we do not find such application in the facts of the present case. We are in agreement with the decision arrived at by the Commissioner Appeals on this point. Yet another plea raised by Department i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee Trust was formed by Smt. Urmila Sathyanarayanan for promoting Bharatanatyam and other forms of Indian Classical Dance. The other Trustee of the Assessee Trust is Sri.A.D.Sathyanarayanan, husband of Smt.Urmila Sathyanarayanan. The land in question belong to Sri.A.D. Sathyanarayanan as an individual and in order to extend his goodwill for the benefit of his wife's endeavour to promote the classical dance, he permitted the Trust to construct a building by utilising the funds of the Trust for the purpose of promoting Bharatanatiyam and other Indian Classical dances. 2. The assessee trust is registered under Section 12 AA of the Income Tax Act, 1961, (hereinafter referred to as the Act) on 23.12.1997. The Assessing Officer, while co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Section 13 (1) (c) of the Act. 5. It is the specific case of the appellant that there is an agreement dated 13.02.2013 whereby as and when the Trust decides not to use the premises which has been constructed for the aforesaid purpose, the individual Sri.A.D.Sathyanarayanan would pay the trust the value of the building so constructed. There is no rent or fee or such other claim by the said individual on the trust for the utilisation of the land on which the building is constructed by the Trust. According to the assessee no income is derived to the individual Sri.A.D.Sathyanarayanan as a Trustee. It is the further contention of the learned counsel for the assessee that the property is also not built for the benefit of the individual Sri. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to in sub-section (3); ... ... ... .... ... (3) The persons referred to in caluse (c) of sub-section (1) and sub-section (2) are the following namely :- (a) ... ... ... (b) ... ... ... (c) ... ... ... (cc) any trustee of the trust or manager (by whatever name called) of the institution ; 7. The fact that the Trust, during the assessment year in issue, constructed the building in question and spent amounts for the entire construction is not in dispute. The fact that the Trust has not paid any amount as rent, licence fee, lease fee or such other fee to the individual Sri.A.D.Sathyarayanan is also not in dispute. The issue that is raised by the Department is that while accepting that the Trust has not paid any rent or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the property on the trustee per se because, as per the agreement, on surrender of the building the trustee will have to pay compensation and, therefore, the question of application of funds for the benefit of the trustee does not arise. The definition of 'Beneficial Owner' in terms of Black Law Dictionary, relied upon by the counsel for the department, will not further the case of the department because as the definition of 'Owner' also has a restrictive meaning as in this case. We extract the said portion hereunder : Owner. The person in whom is vested the ownership, dominion, or title of property, proprietor. He who has dominion of a thing, real or personal, corporeal or incorporeal, which he has a right to enjoy an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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