TMI Blog2017 (2) TMI 1013X X X X Extracts X X X X X X X X Extracts X X X X ..... e of dissolution of trust cannot be termed to be an amount received by the beneficiaries "without consideration". The fact that the trust had borne the tax at maximum marginal rate on its income has also not been controverted. Therefore the addition cannot be upheld on the applicability of clause (vi) of sub-section (2) of section 56 as the money received by the assessee is not "without consideration", we confirm the order of CIT(A) deleting the addition. - Decided against revenue - ITA No. 2210/Mum/2015 - - - Dated:- 15-2-2017 - Sri Mahavir Singh, JM And Sri Rajesh Kumar, AM Revenue by : Shri T. A. Khan, DR Assessee by : Shri Y. P. Trivedi Smt. Usha Dalal, DRs ORDER Per Mahavir Singh, JM This appeal by the Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee filed copy of Tribunal s order in assessee s husband case wherein exactly identical facts are discussed. The issue was considered by the AO and AO has noted the following facts: - A) Additions on proceeds arising due to dissolutions of Sant Trust:- 1.1 In this case, a private Trust -Sant Trust was settled by Mrs. Vinodini C Pratap, mother of the assessee, by Indenture of Trust dated 20th January, 1978. This Trust is not registered as a Trust u/s 12AA - a fact confirmed for the period 1978 to 1980 by O/o. the DIT(E), Mumbai. The trustees of this Trust were (1) the assessee, Mrs. Sandhya Ashok Pratap, (2) Mr. Ashok C Pratap, while the beneficiaries were (i) Natasha (ii) Tanya - the grandchildren of Mrs. Vinodini C Prata ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eads specified in section 14, items (a) to (e). Sub section (2) describes that, in particular and without prejudice to the generality of sub section (1), the income described in various clauses, inter alia, including clause (vi) which has been reproduced above, the income shall be chargeable to income tax under the head Income From Other Sources . Clause (vi) of s/section (2) of: section 56 of the Act will describe that in a case where any sum of money, the aggregate of which exceeds ₹ 50,000, is received without consideration by an individual or HUF in any previous year from any person or persons and / or after 1st April 2006 (but before 1st October 2009), the whole of aggregate value of such sum shall be liable to be assessed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in the background of the provisions of Indian Trust Act and the dissolution of the trust, appellant did not receive the sum of ₹ 1,36,595, in his capacity as a trustee i.e., representative assessee for the purpose of trust . The fact that the assessee has received the amount in the capacity of beneficiaries has also not been controverted, therefore, the amount received by the trust is in pursuance of dissolution of trust. The amount received in pursuance of dissolution of trust cannot be termed to be an amount received by the beneficiaries without consideration . The fact that the trust had borne the tax at maximum marginal rate on its income has also not been controverted. Therefore, in our considered opinion, the addition cann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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