TMI Blog2007 (1) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... any mistake apparent on the record & therefore, action u/s 154 to charge tax on higher rate u/s 164, was not warranted – AO is not justified in taking recourse to sec. 164 - assessment order passed u/s 154 is not justified - 9 of 1999 - - - Dated:- 3-1-2007 - R. K. AGRAWAL and VIKRAM NATH JJ. JUDGMENT 1. The Income-tax Appellate Tribunal, Allahabad, has referred the following question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22,1973. At the time of creation of the trust, Shri Rakesh Mohan was himself a minor and had no son. It was further provided in the trust deed that in the event of the first son of Shri Rakesh Mohan expiring before attaining majority or in the event of Shri Rakesh Mohan not begetting a son, the sole beneficiary of the trust was to be one out of various persons specified in the trust deed depending ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 164 of the Act, since the assessee was a private trust and the shares were indeterminate. Subsequently, on detecting the above mistake, the Assessing Officer passed an order under section 154 of the Act on February 27, 1989, thereby charging the tax at 66 per cent. in accordance with the provisions of section 164 of the Act. 6. For the assessment year 1986-87, the assessee-trust fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer was not justified in taking recourse to the provisions of section 164 of the Act for applying the higher rates of tax as per the provisions of section 164 of the Act. 8. In the appeal against the assessment order under section 143(3) for the assessment year 1986-87, the Deputy Commissioner (Appeals) following the Tribunal's order in I. T. A. No. 1252(Alld) of 1986 for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including the order passed under section 154 of the Act. 11. Merely because the Revenue had not accepted the decision of the Tribunal and the reference made was pending, it cannot be said that there was any mistake apparent on the record and, therefore, action under section 154 of the Act was not warranted. We are, therefore, of the considered opinion that the Tribunal has not committed any il ..... X X X X Extracts X X X X X X X X Extracts X X X X
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