TMI Blog2017 (5) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... ately considered the same issue and held that the assessee trust was entitled for the same. The Hon’ble Court had expounded that Section 161 of the I.T Act, 1961, makes a representative assessee subject to the same duties, responsibilities and liabilities as if the income was received by him beneficially. The fiction is created as it was never the object or intention of the Act to charge tax upon persons other than the beneficial owner of the income. Whatever benefits the beneficiary will get in the said assessment must be made available to the trustee while assessing him under section 161. From the above case laws it is amply clear that by virtue of Section 161 of the I.T. Act the representative assessee is subject to the same duties, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a sole Beneficiary (Ms. Vidushi Somani), who is an 'Individual' and therefore the Trust/Trustee are merely Representative Assessees u/s. 161, whose status is dependent on the status of the ultimate Beneficiary. 2. Without prejudice, the learned CIT (A) erred in not adjudicating the other grounds of appeal on merits by stating that the other grounds, being consequential, are dismissed. While the appellant had a case on merits and the same was argued before CIT (A) and submissions filed thereon. 3. The Appellant craves leave to add, alter or amend the Grounds of Appeal at or before the hearing of the appeal. 3. The assessee is a private non discretionary Trust. Mr. Vinay Somani and Mrs. Shrilekha Somani are the trustees of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to discuss that the possession of the flat was not taken within 3 years from the date of transfer and therefore the appellant was not eligible for deduction u/s. 54F. 4. Upon assessee s appeal Ld. CIT-A confirmed the action of the A.O as regard holding that assessee being a AOP cannot be granted benefit of section 54F. She distinguished the decision relied upon by the assessee s counsel. She placed reliance upon the order of Hon ble Punjab Haryana High Court in the case of Raghunath Dass Sethi Vs. CIT 277 ITR 341. She held that being AOP assessee cannot be entitled to deduction u/s. 54. As regards the issue regarding disallowance of deduction of u/s. 54F on other aspect as held against the assessee by the A.O Ld. CIT-A did not adjudic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee trust, which is for the sole benefit of an individual, will be entitled to deduction u/s. 54F or not, when its status is that of A.O.P. As per Section 54F the benefits of this section is available to individual or Hindu undivided family (HUF). Hon ble jurisdictional High Court in the case of Mrs. Amy F. Cama (Supra) has elaborately considered the same issue. The jurisdictional High Court was dealing with assessee trust s claim for deduction for purchase price of the flat from capital gain as per Section 54 of the Act. The Hon ble jurisdictional High Court has held that the assessee trust was entitled for the same. The Hon ble Court had expounded that Section 161 of the I.T Act, 1961, makes a representative assessee subject to the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidual. For this proposition Hon ble High Court had relied upon the decision of Hon ble Gujarat High Court in the case of CIT vs. Deepak Family Trust to 211 ITR 575 and Calcutta High Court decision in the case of CIT vs. Shri Krishna Bandar Trust 201 ITR 989. 9. From the above case laws it is amply clear that by virtue of Section 161 of the I.T. Act the representative assessee is subject to the same duties, responsibilities and liabilities as if the income was received by him beneficiary, and whatever benefits the beneficiary will get in the said assessment must be made available to the trustee while assessing him u/s. 161. It is clear that it is only by virtue of u/s. 161 that the trust has been assessed for the income that is for benef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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