TMI Blog2003 (12) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... swer the questions in the negative, i.e., against the assessee and in favour of the Revenue. - - - - - Dated:- 3-12-2003 - Judge(s) : A. R. DAVE., K. A. PUJ. JUDGMENT The judgment of the court was delivered by A. R. DAVE J. - In view of the orders passed by the hon'ble Supreme Court in Civil Appeals Nos. 3576 and 3577 of 1989 dated September 26, 1989, at the instance of the Revenue, the following questions have been referred to this court for its opinion under the provisions of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), which arise out of an order dated August 27, 1983, passed by the Income-tax Appellate Tribunal, Ahmedabad Bench "C": "1. Whether, on the facts and in the circumstances of the case, the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... existence of the resolution and the Tribunal was justified in rejecting the reference application of the Revenue arising out of the miscellaneous application filed by it?" Senior standing counsel, Shri M. R. Bhatt, has appeared for the applicant-Revenue, whereas the learned advocate, Shri B. D. Karia, has appeared for the respondent-assessee. The facts giving rise to the present reference, in a nutshell, are as under: The respondent-assessee is a discretionary trust. We are concerned with the assessment year 1975-76, the previous year thereof being the year commencing from April 1, 1974, to March 31, 1975. The respondent-trust, though a discretionary trust, passed a resolution on March 31, 1974, to the effect that the income of the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, the Revenue had filed an SLP before the hon'ble Supreme Court. The hon'ble Supreme Court ultimately directed the Tribunal, by an order dated September 26, 1989, to refer the questions referred to hereinabove, to this court for its opinion. Learned senior standing counsel, Shri M. R. Bhatt, appearing for the applicant-Revenue, has submitted that looking to the fact that the respondent assessee was a discretionary trust, the Income-tax Officer had rightly assessed the income of the assessee-trust for the assessment year 1975-76 in the hands of the assessee. According to him, once the trust was a discretionary trust, it was not open to the trust to pass any resolution or to adopt any course so as to make it a specific trust. It has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee-trust for the previous year 1974-75 to the beneficiary named hereinabove. As the said income had already been taxed in the hands of the beneficiary, according to him, it was not open to the Revenue to tax the income in the hands of the assessee-trust also. He has relied upon the judgment delivered by the hon'ble Supreme Court in the case of Jyotendrasinhji v. S. I. Tripathi [1993] 201 ITR 611, to substantiate his argument that the Revenue had an option to tax income in the hands of the beneficiary or the trust. We have heard the learned advocates and have also perused the record and the judgments referred to by the learned advocates. Looking to the fact that the respondent-trust is a discretionary trust, which had passed a r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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