9911796707
TMI Blog2004 (9) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... only the lodging business to the trust and hence the transfer is not hit by the provisions of section 60, even though the property with which the lodging business was done has not been transferred by the assessee to the trust?" The assessee, an individual, is the owner of a building situated at No. 5A (Old No. 6), Lakshmikanthan Street, Thyagaraja Nagar, Madras. The building comprises 40/41 single cot residential rooms and 40/41 double cot residential rooms with other facilities. For the assessment years 1988-89 and 1989-90, the assessee made a claim before the Assessing Officer to the effect that by a gift deed dated June 18,1986, he had gifted the income from the said mansions to one "M/s. Poonga Educational and Charitable Trust" and he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below is not correct. He also relied on the decisions in, (i) CIT v. P. Andal Ammal [2000] 243 ITR 715 (Mad); and (ii) CIT v. Sunil J. Kinariwala [2003] 259 ITR 10 (SC). The decision in CIT v. P. Andal Ammal [2000] 243 ITR 715 (Mad), was from a case where the assessee was a co-owner of a lodging house having one-third share therein and she along with other two owners of the property let out the lodging house to a firm styled L in which one of the co-owners of the property, namely, A, was a partner. The claim of the assessee was that the entire income derived from the lodging house by way of letting out the same should be assessed under the head "Income from other sources". The Assessing Officer as well as the first appellate authority r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dissolution of the firm, in the latter case, the sub-partnership acquires a special interest in the main partnership. Though, in view of section 29(1) of the Partnership Act, the trust, as an assignee, became entitled to receive the assigned share of the profits from the firm, it received the share of profits not as a sub-partner, because no sub-partnership came into existence, but as an assignee of the share of income of the assignor-partner. There was no diversion of income by overriding title. The share of the income of the assessee assigned to the trust had to be included in the income of the assessee. Learned counsel for the Revenue is not able to satisfy us as to how the above said two decisions apply to the facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X
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