TMI Blog2004 (3) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... ries, is immaterial. - Therefore, Tribunal has committed an error to extend benefit of exemption under section 53 of the Act to the "association of persons" like the assessee-respondent. - - - - - Dated:- 15-3-2004 - Judge(s) : Y. R. MEENA., SHASHI KANT SHARMA. JUDGMENT In this reference under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), the Income-tax Appellate Tribunal has referred the following question for answer by this court: "Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified that the assessee-trust was not liable to the charge of capital gains tax in view of the provisions of section 53 of the Income-tax Act, 1961?" The relevant assessment year is 1986-8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e full value of the consideration received or accruing as a result of the transfer of such capital asset does not exceed two hundred thousand rupees, the whole of the capital gain shall not be charged under section 45; (b) in a case where the full value of such consideration exceeds two hundred thousand rupees, so much of the capital gain as bears to the whole of the capital gain the same proportion as the amount of two hundred thousand rupees bears to such consideration shall not be charged under section 45: Provided that nothing contained in this section shall apply to a case where the assessee owns on the date of such transfer any other residential house." The provisions of section 53 of the Act envisage that in a case of capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersons can be assessees independently in their separate status. A perusal of the record shows that the assessee-trust has been assessed in the status of "association of persons" (AOP) and when only the assessee who is an "individual" is exempted from the tax of capital gains on transfer of a residential house, there is no justification to stretch the intention of the legislation to extend the benefit of exemption under section 53 to any other assessee than "individual". Merely because the income ultimately goes into the hands of "individual" beneficiaries, is immaterial. The material thing is an "assessment" in the case of the assessee in hand, which is assessed by the Revenue. Undisputably, in the case in hand, the assessee is a "trust ..... X X X X Extracts X X X X X X X X Extracts X X X X
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